LIMITED TIME 90% OFF QuickBooks for 3 months*

Buy now
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Work smarter and get more done with advanced tools that save you time. Discover QuickBooks Online Advanced.
jan6
Level 1

How do I account for my time spent on product development? This time is overhead and not billable. Can I convert it into owner's equity at my normal billing rate?

 
1 Comment 1
Malcolm Ziman
Level 10

How do I account for my time spent on product development? This time is overhead and not billable. Can I convert it into owner's equity at my normal billing rate?

If this is a sole proprietor or a single member LLC, the equity is the profit, so need to post the cost of your time. Because there is no posted expense, the profit and thus the equity will be higher. If this is a corporation then you would pay a salary to yourself as an employee, (and pay payroll tax on that), and because there is a posted expense, the profit and thus the equity will be lower, as you actually received a payment for your time. If this is a partnership, then your time needs to be accounted for as this affects your share of the profit

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.

Need to get in touch?

Contact us