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userr-josh-brose
Level 1

As the owners of the company, should I use payroll or just move money directly and call it Owner Draw?

 
3 Comments 3
Kevin_C
Moderator

As the owners of the company, should I use payroll or just move money directly and call it Owner Draw?

Nice to see you here in the Community, @userr-josh-brose.

 

Since you're the owner of a sole proprietorship company in QuickBooks Online, you can move the money directly and call it an owner's draw instead of a paycheck through payroll.

 

Before paying an owner’s draw, you must create an Owner’s Equity account first. When you create your account, be sure to choose Equity or Owners Equity as the type of account. 

 

Then, generate a regular check once you're ready to pay the owner. Also, ensure it affects the Owners Equity account you created above.

 

For more details about this process, please refer to this article: Set up and pay an owner's drawI'd also recommend seeking assistance from your accountant to ensure that your books are accurate and to avoid messing up the data.

 

Additionally, check out this article for guides that can help you manage your year-end tasks, taxes, and balances in QBO: Year-end guide for QuickBooks Online

 

If you have more questions about setting up an owner's draw in QuickBooks, feel free to reply to this post. I'll be more than happy to help you out again. Keep safe and Happy holidays!

userr-josh-brose
Level 1

As the owners of the company, should I use payroll or just move money directly and call it Owner Draw?

There are actually two owners… me and my wife.  Does that change anything for us?

userr-josh-brose
Level 1

As the owners of the company, should I use payroll or just move money directly and call it Owner Draw?

If both my wife and I own the company, does that change anything?  Still an owner draw?

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