how to enter withdraw profit?

First check with the state to find out how often a shareholder meeting is required, yes even if there in one shareholder.  That meeting must be recorded on paper, and it is where the shareholders vote on issuing a distribution of profit.

If that is to be done, the total amount is moved from retained earnings to an account called distribution payable (you will have to create it the first time, a liability account).  Then on the date of distribution checks are written for the amount to each shareholder and you use the distribution payable account as the expense (reason) for the check

Hi fd_com,

I'll guide you on how to record the distribution of profit in QuickBooks. First off, you'll need to set up an owner's draw account. Then, write a check from an owner's draw account. 

Here's how:

1. Go to the Lists menu, then select Chart of Accounts or press CTRL + A on your keyboard.
2. At the bottom left choose Account, then click New.
3. Select Equity, then click Continue.
4. Enter the account name (Owner's Draw is recommended) and description.
5. Click Save & Close.

Once done, go to the Banking menu to write a check. Here's how:

1. in the Write Checks window, go to the Pay to the order of section. 
2. Select the owner, and enter an amount next to the $ sign.
3. Enter the amount of the check to the equity account you created to record the owner's draws, then click Save & Close to record the check.

For more insights about the owner's draw account, refer to this article: Set up and pay an owner's draw.

I also recommend consulting your accountant to make sure your books are accurate. 

For future reference, check this article to understand the Chart of Accounts in QuickBooks. 

Let me know if you have additional concerns. I'll be happy to help you again on your next posts. 

@katherinejoyceO  what about the retain earning, can you show me step to move from retaining earning to some other account???

Thanks for getting back to this thread, @fd_com. Let me share additional information on how to handle retained earnings.

The total amount is moved from retained earnings to an account called distribution payable. To do this, you'll need first to create a liability account. 

Here's how:

1. From the Lists menu, choose Chart of Accounts.
2. In the Chart of Accounts window, right-click and click New from the pop-up menu.
3. In the Account Type section, select Other Current Liability.
4. Enter a name for the account.
5. Once done, click Ok.

Then at the time of distribution, checks are written for the amount to each shareholder, and you use the distribution payable account as the expense for the transaction.

I also suggest consulting an accountant. This is to ensure that your book is accurate and balance. 

Additionally, let me share this article to help you set up, record, and manage upfront deposits in QuickBooks Desktop: Manage retainers.

Feel free to get back to this thread if you have further questions about the distribution of profit in QuickBooks. I'll be happy to assist you again. Keep safe and have a good one.

Help me apply this answer to my event venue business profit payouts. 

For some events at my venue, I have a profit split with the event owners (promoters or event organizers). Typically the event owners invest initial funds in the pre production phase of the event as well as my event production company. At the end of an event we determine the net gain per event and my company pays out  the profit split by check, cash or EFT payment to the event owner. 

In my books, do I treat the event owner as a "vendor" and "expense" the payout as a cost of the show to my business OR

is this expense more like a shareholder (on a case by case event) and my company will track the payout using a withdrawal  in a "distribution payable expense" account? 

Thanks for joining this thread, @Sundewurks.

I'm here to provide some insights on how to record the distribution of profits in QuickBooks Desktop (QBDT). 

I know how important it is to keep track of your profit sharing. That said, you may need to set up an owner's draw that involves your equity accounts. 

Moreover, I highly recommend consulting your accountant to know how to treat profit sharing. Since they know how to accurately manage accounts based on what type of business you have.

I'll also add this article that can serve as your reference to understand more about the Chart of Accounts.

You can always go back to this thread if your accountant has instructions that you find challenging to reflect on QuickBooks Desktop. The Community team always has your back. Have a good one.