How to record profit taken by the partner

Hello there, @accounts-the4x4-.

Managing the distribution of profits to partners is a crucial aspect of maintaining accurate financial records for your business. Let's go through the essential steps to make sure that your partner's portion of the profits is correctly documented in your financial records.

To record the profit taken by your partner in QuickBooks Online, you will need to set up an equity or owners account. This account will track what they invest in and make from the business. 

Here's how: 

1. Go to Settings ⚙, then select Chart of Accounts.
2. Click New.
3. From the Account Type ▼ drop-down, select Owner's equity.
4. From the Detail Type ▼ drop-down, select Owner's Equity or Partner's Equity depending on your situation.
5. Click Save and Close.

 Once this is set up, you can record the profit taken by your partner by writing a check that affects the specific account you've created for them. You can follow these steps below: 

1. Go to + New, then select Check.
2. From the Payee ▼ dropdown, select who you want to address the check too.
3. From the Bank Account ▼ dropdown, select the account you want the money to come from.
4. Fill out the rest of the fields accordingly.

I'd also recommend seeking assistance from your accountant to ensure that your books are accurate and to avoid messing up the data.

Additionally, here's an article you can read through to learn how to record capital investments to track money going into your business: Record an owner's contribution or capital investment in your business

Keep me posted if there's anything else I can help you with recording your partner's profit in QuickBooks. I'll be right here to help you.