We have a multi LLC. We receive funds from jobs and after we pay back our expense accounts, we immediately disperse funds equally. I.E. $10,000 payment rec - $2,000 expenses = $8,000 profit. We already deposited $10k in the bank. Now we have to do the draws. 50/50. We do a payment to the owners and pay from the bank to the owner equity draw account. Since we are always paying from the draw, we always end up with negative equity. What would be the proper way to receive money from a client, reduce down to the profit, deposit to equity and then draw from equity to show contribution and draw? For now, we know that we will end up with a -0- balance equity but, in the future we may not take draws as often
You would need to get in touch with a trained and qualified accountant who will be able to advise on how to record this in your account we are just technical support not trained accountants.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
