As a sole proprietor, how do i post profit payments to myself throughout the year?

Hello jake69. It’s great that you want to ensure everything is done correctly. You can use Owner’s Draw to post profit payments to yourself.

Here’s how:

1. Click the Gear icon, then select Chart of accounts.
2. In the Chart of accounts window, select New account.
3. Put Owner’s Equity in the Account name field.
4. From the Account type drop-down, choose Equity.
5. Select Owner’s Equity in the Detail type drop-down menu.
6. Enter an opening balance.
7. Click Save.

To record a payment (reimbursement) from the Equity account:

1. Select +Create, then choose Expense.
2. Choose the bank account you’re using for the reimbursement.
3. In the Category column, select Owner’s Equity.
4. Enter the reimbursement amount.
5. Click Save and close to record the expense.

For added clarity, consider consulting an accountant to ensure your books remain accurate.

Feel free to reply below if you have any further questions. We’re here to help.