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Am I entering Owner's Draw correctly?
we are an electrical contracting LLC
and first time using deskpro
how and under what do I pay myself
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Reports and accounting
You'll have to set up an owner's equity and then write a check to pay for yourself, Lucy Harris.
To create an owner's equity:
- Click Gear, and then click Chart of Accounts.
- Click New.
- In the Account window, click the Account Type drop-down arrow, and then choose Equity.
- In the Detail Type drop-down, select Owner’s Equity.
- Enter the Name, and the opening balance.
- Click Save and Close.
To write a check from an owner's equity account:
- Click Create (+), then click Check (under Vendors).
- Choose the bank account where your money will be withdrawn.
- Select Print later if you want to print the check. Then, fill in the check fields.
- In the Category field, be sure to select Owner's equity.
- Click Save and close.
Please get back to me if you need anything else. I'm here to help you some more.
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Reports and accounting
Did you bother to read the link you posted, the article is from 2012 and has nothing to do with the OP question
For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)
[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here
To pay yourself, you write a check and use the equity drawing account as the expense (reason) for the payment