How to track profits for a partnership?

@AR415 ,

Billable hours on invoices would be one allocation base for this type of profit distribution.  If there is significant travel time to client locations, especially if one partner travels much more, that may also be something to consider.

Hello there, AR415.

I've got the steps on how you can record the profits earned.

You'll have to set up your partner as a vendor and create a separate equity account for them. Let me guide you how:

1. From the Expense tab, select Vendors.
2. Click New vendor.
3. Enter your partner's information.
4. Click Save.

Then, create an equity account:

1. From the Accounting tab, select Chart of accounts.
2. Click New.
3. From the Account Type, select Equity.
4. Select Partner's Equity.
5. Click Save and Close.

Once done, you're good to record your partner's investment. To do this, you'll have to create a bank deposit. Here's an article as your guide: Record the investment.

If you have other concerns about recording transactions, feel free to visit our Help Articles page. We've laid out articles there that will help you resolve your concerns. 

I'll be around whenever you have concerns with regard to keeping track of your transactions. Have a good one!​​​​​​​