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contactaccurateh
Level 1

I am the sole owner of an S corp. I pay myself a salary each month through quickbooks payroll.

I am the sole owner of an S corp. I pay myself a salary each month through quickbooks payroll. I want to start taking out owners draws as well. When i set up the account to pay myself should i pay myself as a new vendor or use my employee account already set up through payroll to pay myself?
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RCV
QuickBooks Team
QuickBooks Team

I am the sole owner of an S corp. I pay myself a salary each month through quickbooks payroll.

Great to have you here. Let me guide you on how to pay an owner's draw, contactaccurateh.

 

A sole proprietor will be paid with an owner's draw instead of creating an employee paycheck or paying it as a vendor transaction. We use the owner's draw account (equity account) to track withdrawals of the company's assets to pay an owner n QuickBooks Online (QBO). 

 

To start with, let's create an equity account in the Chart of Accounts page.

 

Let me show you how:

 

  1. Go to the Gear icon on the top menu. 
  2. Select Chart of Accounts.
  3. Tick the New button.
  4. Choose Equity from the Account Type drop-down. 
  5. From the Detail Type drop-down, select Owner’s Equity
  6. Enter the Name, Description, and Balance.
  7. Press Save and Close.

equity1.PNGequity2.PNG

 

Then, write a check from an owner's equity account. Let's make sure we select the Owner's equity you created in the Category field.

 

equity3.PNG

 

I have a link here that provides you with articles about managing your Charet of Accounts: https://quickbooks.intuit.com/learn-support/en-us/advanced-accounting/chart-of-accounts/08?product=Q....

 

Fill me in if you need a hand with reconciling your accounts or any QBO related. I'm always here to ensure your success. You have a good one.

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