Congratulations—your business is now profitable! After all your hard work, it’s time to get you paid! If you’re a sole proprietor or a partner, this video will show you how to record the money you withdraw for personal use. Please note, this video assumes that you are not an employee. If you’re set up to receive paychecks, the following does not apply to you.
Navigate to the Manage Users Menu
To begin, from the home screen, click the plus sign, and beneath the “Vendors” options, select Check.
Add a New Payee
In the “Choose a payee” field, click the drop down menu, and choose Add new.
Type your name. If your name isn’t in QuickBooks yet, add yourself as a Vendor.
Create an Owner’s Draw Account
Next, go to the Account section, and type in the name “Owner’s Draw.”
In the Account customization module, change the Category Type to Equity.
Then for Detail Type, choose either “Owner” or “Partner Distributions.”
Click Save to save the new account details you’ve entered.
Enter Transaction Details
Type in a Description for this transaction, then type in an Amount for this transaction.
If you’re handwriting a check, be sure to enter a check number. Otherwise, check the box for Print later.
Finally, select Save and close in the bottom right corner.
And that’s it. You’re done! Now it’s your turn. Record an Owner’s Draw in your QuickBooks.