Hi @angelacct This is very helpful. I have an LLC, 2 partners. We each have our Equity account divided like this:
--Partner1 Equity - Contributions
--Partner1 Equity - Distributions
--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.
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?
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.
Go to the Transactions tab on the left side.
Enter a Date, Transaction, and Amount.
Choose Personal withdrawal in the Category and Tags column.
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.