I am new here and to Quickbooks and need a bit of help, please.
I currently run a sole trader business structure in Australia using Quickbooks Online and am having difficulty on how to categorise transactions relating to owner's equity in my banking feed. When I first started using Quickbboks Online everything was managed through my personal account, but now, I have a separate business account. My business is doing really well now, to the point that I can pay myself a steady 'wage' per week. I do this by transferring money from my business account to my personal account.
My problem is this, though, I can record the transfer in one of two ways and I do not know which one I should choose. In my banking feed under my business account, I can either:
I feel like the second way is the correct way, but am just too unsure. Could someone please help me on this?
Both ways that you've suggested can work to record your owners' drawings, as QuickBooks considers Expense transactions and Transfers to both be "money out" transactions.
The first option you mentioned would record the wage as an expense from your business, to yourself, which may make more sense in your situation than the second option, which is more used for moving money between bank accounts.
If you have an accountant or bookkeeper, I would recommend consulting with them on how they prefer this to be recorded.