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tracyagardner
Level 2

Am I entering Owner's Draw correctly?

Hi @angelacct This is very helpful. I have an LLC, 2 partners. We each have our Equity account divided like this:

Partner1 Equity

--Partner1 Equity - Contributions

--Partner1 Equity - Distributions

 

Partner2 Equity

--Partner2 Equity - Contributions

--Partner2 Equity - Distributions

 

So at the end of the year, when i want to zero out the distributions (our "Draw" accounts), i would then create journal entries, with Debits to which accounts? I know to credit the Draw/Distribution accounts but i'm confused about the Debit.

Lavender
Level 1

Am I entering Owner's Draw correctly?

Hello!just wanna ask if I did this right thing...in the bank feeds i categorize it as owners pay and personal expenses..however when i try to run the balance sheet,it shows negative  amount and when i view it the transaction type is expense,is this correct?

 

503742
Level 1

Am I entering Owner's Draw correctly?

I am using QB for self employed software...How should I set up a Draw account for the 2 owners???

 

Really like using this software.

 

Bob Burgess

[email address removed]

MichelleBh
QuickBooks Team

Am I entering Owner's Draw correctly?

Thanks for joining on this thread, @503742.

 

I have here a few easy steps on how to set up the draw account in QuickBooks Self-Employed (QBSE).  

 

Since QBSE doesn't have a Chart of Account (COA), I'd suggest selecting the Personal withdrawal as a category in creating a draw. This way, QuickBooks will exclude in calculating your estimated taxes or business expenses. 

 

Here's how: 

 

  1. Go to the Transactions tab on the left side. 
  2. Enter a DateTransaction, and Amount
  3. Choose Personal withdrawal in the Category and Tags column. 
  4. Tap Save

 

Repeat the steps for your other owner. You may refer to this article: Transfers: Owner's Withdrawal.

 

You can always run the Business and personal expenses report by going to the Reports tab. This way, you can review all the data you've entered on your draw account. Afterward, we'll have the option to either Print or Download it. All you have to do is just click the icon.

 

personal withdraw in qbse 1.PNG

 

I'd also encourage you to visit this link about managing different categories and how this appears on reports: Schedule C and expense categories in QuickBooks Self-Employed.

 

Additionally, I'm happy to inform you that you have an option to join our webinars or training class. This way, you can learn more about handling your account. 

 

Don't hesitate to let me know if you have follow-up questions about your draw account, @bob Burgess. I'm glad to assist. Have a nice day ahead. 

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