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dalal1
Level 1

How to record owners shares payment?

 
Solved
Best answer December 30, 2020

Best Answers
Charies_M
Moderator

How to record owners shares payment?

It's nice to see your post here, dalal1.

 

If the payment is intended for payback to the company's owner, we'll need to enter an Expense for this. Before doing so, let's create a Current Liability account to track the amount owing to the business owner for incurring expenses on its behalf.

 

Here's how:

  1. Select the Gear icon.
  2. Click the Chart of Accounts and New.
  3. Under the Account Type column, select Current Liabilities. Under the Detail Type column, select Current Liabilities. Under the Name column, type any name which is applicable ie. Payable to Owner.

Then, use the account when you create an expense. To do that, go to the + New icon and select Expense. Fill in the necessary information and click Save and close.

 

For a complete process on how to pay back to the owner who paid for purchases on behalf of the business, check out this link.

 

To help you with the future task and tips when using QBO, you might want to visit our Help Articles.

 

I'll be right here to continue helping if you have further questions or any other concerns. Feel free to tag me in your comments.

View solution in original post

3 Comments
Charies_M
Moderator

How to record owners shares payment?

It's nice to see your post here, dalal1.

 

If the payment is intended for payback to the company's owner, we'll need to enter an Expense for this. Before doing so, let's create a Current Liability account to track the amount owing to the business owner for incurring expenses on its behalf.

 

Here's how:

  1. Select the Gear icon.
  2. Click the Chart of Accounts and New.
  3. Under the Account Type column, select Current Liabilities. Under the Detail Type column, select Current Liabilities. Under the Name column, type any name which is applicable ie. Payable to Owner.

Then, use the account when you create an expense. To do that, go to the + New icon and select Expense. Fill in the necessary information and click Save and close.

 

For a complete process on how to pay back to the owner who paid for purchases on behalf of the business, check out this link.

 

To help you with the future task and tips when using QBO, you might want to visit our Help Articles.

 

I'll be right here to continue helping if you have further questions or any other concerns. Feel free to tag me in your comments.

View solution in original post

dalal1
Level 1

How to record owners shares payment?

Thank you.

Now one of the owners is buying out his partner.

The funds that will be used to pay the partner are in the account and a payment will be paid directly from the current bank account.

I'm guessing their accountant will guide me but how would I post that in QBO online?

Thank you for your assistance.

ZackE
QuickBooks Team

How to record owners shares payment?

Thanks for following up with the Community, dalal1. I'm happy to hear Charies_M was able to help with recording your owner's shares transaction.
 

You can record the buyout payment as a journal entry. I'd recommend working with an accounting professional to assure it's entered properly. If you're in need of one, there's an awesome tool on our website called Find an Accountant. All ProAdvisors listed there are QuickBooks-certified and can provide helpful insights for driving your business's success.
 

You'll additionally be able to find many detailed resources about using QuickBooks in Intuit's help article archives. A link to that part of our website can be found in my colleague's post above.
 

Please feel more than welcome to send a reply if there's any questions. Have a wonderful day!

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