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December 10, 2021
Question

Hi, I'm a sole trader, if I pay myself (to my personal account from my biz account) each month, what category should this transaction ideally fall under?

  • December 10, 2021
  • 1 reply
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1 reply

JasroV
December 10, 2021

I'll help you go over to your account and have yourself paid, @humanedgemarketi.

 

You'll want to use the Owner's draw to categorise the transaction since you're paying yourself. 

 

Additionally, you can also create a cheque to pay yourself and take the funds out from the owner's draw. Let me show you how.

 

  1. Go to the + New menu in your QuickBooks Online (QBO) account.
  2. Under Suppliers, select Cheque.
  3. Enter the needed details, then select Save and close.

 

You might also want to check out this article to learn more about the process: Salary or Draw: How to Pay Yourself as a Business Owner

 

Moreover, I still suggest consulting your accountant for additional guidance. They can advise you on other ways to pay yourself accurately.

 

In case you've used your personal account for business expenses and vice versa, you can refer to this article on how to record it in QBO: Mixing business and personal funds.

 

When you're ready to reconcile your accounts, please feel free to utilize this resource for guidance: Reconcile an account in QuickBooks Online.

 

If you have any other questions about paying yourself in QBO or regarding your accounts, you're always welcome to tag me in your reply. I'll be here ready to back you up. Keep safe and have a good one!