Categorizing business profit bank transfers: Self-employed
I am a one person self-employed business. How do I categorize when I take profits? Mainly as a bank transfer between my business general operations bank account to my personal checking account to pay my monthly personal expenses like mortgage, utilities, etc. I want to make sure that this is not being counted as an expense or negative income. Thanks.
Categorizing business profit bank transfers: Self-employed
When you take money or value from the business for personal use as a sole proprietor, that is an equity draw. Use that account as the expense (reason) for the payment/withdrawal.
Categorizing business profit bank transfers: Self-employed
When you take money or value from the business for personal use as a sole proprietor, that is an equity draw. Use that account as the expense (reason) for the payment/withdrawal.
Categorizing business profit bank transfers: Self-employed
Thank you! For description then I have been writing: "Equity income transfer to owner personal account". Something like that sufficient? Also, do I list myself by individual name as payee or leave that blank?
Categorizing business profit bank transfers: Self-employed
I have the same question, however, because I am pretty much clueless, I am not following what you mean when you say "use this account". Can I create a "tag" and label it "Equity draw" as you refer to in your message. And then every time I go to transfer $ from this account that is linked to my Quickbooks to my personal checking account it will show it as.....? I'm confused.
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