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chris-russell
Level 1

Owner distribution: Our business is ready to make our first distribution. However, I need help doing this through QB online. I'll be writing paper checks. Anyone help?

 
1 Comment 1
JamesDuanT
Moderator

Owner distribution: Our business is ready to make our first distribution. However, I need help doing this through QB online. I'll be writing paper checks. Anyone help?

Your concern is quite on the accounting side of the business. However, we'll get through with this, chris-russell.

 

Owner's contribution and distribution has something to do with the Equity account. For partner distributions, we can create an account just link this:

  1. Click Accounting on the left menu and go to the Chart of Accounts tab.
  2. Click the New button and select Equity in the Account Type field.
  3. Select Partner Distributions in the Detail Type field.
  4. Enter the Name and other necessary details.
    You can leave the Balance field if you have to.
  5. Click Save and Close.

After that, we can use it to distribute the amount through Check or Expense.

  1. Click the + New button in the upper-left corner and select Check or Expense.
  2. Enter the business account in the Bank Account or Payment account field.
  3. Enter the Payee and the Payment date.
  4. Go to the Category detail section and select equity account you've created earlier in the CATEGORY column.
  5. Enter the amount you want to distribute and click Save and close.

You can also use this link for reference: Set up and pay an owner's draw.

 

I'd also recommend reaching out your accountant to see if they have another way of doing this.

 

Feel free to drop by again if you need anything else. Have a great day!

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