Hi! My client and his partner own a gutter business 50/50 and they are both the main employees. They want to be set up under guaranteed payments(and it is listed in their partnership agreement), so how do I go about doing that? From what I have gathered on here, I set it up under my chart of accounts as an expense account. Do I categorize it under "other business expenses" for the detail type? And will I need to set up multiple accounts since it will be income for both of them? Also, I had previously been categorizing their monthly pay under "owner's pay and personal expenses", so do I mark the new guaranteed payments account as a sub account? Or do I just recategorize everything that I had previously categorized under owner's pay and recategorize it under guaranteed payments?
Thank you! This is very confusing to me.