Owner Draw in QuickBooks Self Employed

Thanks for choosing QuickBooks Self-Employed to handle your business, renders. 

I'm here to ensure you're able to set up the draw in your account correctly. 

QuickBooks Self-Employed does not have a Chart of Accounts where you can set up equity accounts, unlike QuickBooks Online. This product is designed to track business income and expenses to help with your estimated taxes and Schedule C. 

To track the owner's draw, I'd recommend selecting Personal withdrawal as a category in QuickBooks Self-Employed. For visual reference, please see the screenshot below.

For more details about the process, please see this article: Transfers Owner's Withdrawal.

Also, you can always run the business and personal expenses report to review all the data you've entered on your Personal withdrawal. I'll show you how:

1. Go to the Reports tab.
2. Go to the Business and personal expenses section.
3. Modify the date.
4. Click View.

Once done, we'll have the option to either Print or Download it. To do so, please make sure to click the icon.

Please let us know if you have additional questions or concerns about tracking and managing your transactions. We'll make sure we provide the help you need.

Hello, My personal withdrawals are not showing up in any reports. I have marked the transactions as Personal Withdrawals. When I view the Business and Personal Expenses report there is no line item for Personal Withdrawals, nor is there any line item for transfers. 

I'm here to clarify why personal withdrawals aren't appearing on reports in QuickBooks Self-Employed (QBSE), Kaiwuzheer.

Before that, we'd appreciate it if you could provide a screenshot of the Business and Personal report you're referring to so we can visualize the issue and provide a more accurate response.

In QBSE, the Personal Withdrawals category won't appear on the Profit and Loss, Tax Summary, and Tax Details reports since it doesn't count toward income or expenses.

If you want to view the list of your transactions categorized as Personal Withdrawals, I recommend filtering the entries on the Transactions page. Here's how:

1. Go to the Transactions menu.
2. Select the Type dropdown.
3. Click Transfer.

Moreover, I'll share these articles to assist you with filing your QBSE taxes:

• Automatically estimate your income tax in QuickBooks Self-Employed
• QuickBooks Self-Employed Annual Tax Guide

Reach out to us if you need further assistance with categorizing your transactions. We'll be happy to respond and provide answers to your questions. Keep safe.

An owner's draw is money going out of the business. I need a report that shows me the money coming in and the money going out. This is accounting software, isn't that a very basic requirement? Why is it missing from at least one report?

You can filter the Transactions menu to view a list of your transactions categorized as Personal Withdrawals, Kaiwuzheer. Let me share how you can run the report you need in QuickBooks Self-Employed (QBSE).

When running the Business and Personal Expenses report in QuickBooks Self-Employed, only transfers tagged as Personal will be included in the report. Transfers tagged as Business won’t be included. For more information, check this article: Owner's Withdrawal.

To view the list of your transactions categorized as Personal Withdrawals, I recommend filtering the transaction list. Here’s how:

1. From the left menu, click Transactions.
2. Locate the transaction in the list.
3. Choose Business if the transaction was for business or select Personal for personal transactions.

Additionally, you can export transactions and run reports while customizing the information in Excel. For detailed steps, see this article: Export Transactions and Get Reports in QuickBooks Self-Employed.

Moreover, check out the following articles to learn more about Schedule C and categorizing transactions:

• Schedule C and expense categories in QuickBooks Self-Employed
• Categorize and edit transactions in QuickBooks Self-Employed

We aim to ensure you can easily get an overview of your transactions. If you need further assistance or have any other concerns, please feel free to return to this thread. Have a great day!

Your link to Owner's Draw is broken. 

I have to ask this fundamental question: Since the IRS requires that I pay myself a reasonable amount, and an Owner's Draw (Business: Personal Withdrawal) is the recommended approach for sole-proprieters, how do I use QBSE to determine if my business is profitable? Surely one of the reports should do that, right?

Hi there, Kaiwuzheer. I'm here to help you determine if your business is profitable in QuickBooks Self-Employed (QBSE).

First, let me clarify that Owner's Draw is indeed a common practice for sole proprietors, allowing you to withdraw funds from your business without it being classified as a wage or salary. Since you’re looking to determine the profitability of your business using QBSE, you can run a Profit and Loss Report.

This report summarizes your income and expenses over a specified period. It will give you a clear overview of your revenues vs. expenses, helping you see whether your business is profitable. You can access this report through the Reports section.

Additionally, you can refer to the QBSE Annual Tax Guide for comprehensive information on managing your taxes effectively throughout the year.

If you're still having challenges with the link or need further clarification, please let me know. I'm here to assist you with any additional questions you might have.