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Amelia Boston
August 20, 2022
Question

Owner Withdrawal

  • August 20, 2022
  • 1 reply
  • 0 views

Hello,

 

I am trying to figure out the right way to categorise my personal wage from my self-employed business. I have researched and it seems the best way to categorise my wage coming out my business account is 'owner withdrawal' which I have done. But, as I have both my business and personal account attached to quickbooks (as I sometimes need to make payments from my personal bank account) I can't see whether to put the money going into my personal account as personal income or exclude it as it I have already marked it being withdrawn from the business account. I hope this makes sense, can anyone help? 

 

KR 

Amelia

1 reply

KlentB
KlentB
August 20, 2022

Hi there, Amelia.

 

I'll share some insights on handling the owner's withdrawal in QuickBooks Self-employed.

 

Mixing business and personal finances may seem like an easier way to manage your growing business. But sometimes this can cause confusion when categorizing transactions.

 

You'll use the owner's withdrawal when transferring money out of the company's assets to pay an owner. All the funds that came from self-employed work are categorized as Business. On the other hand, self-employment income deposited to your personal accounts to pay yourself should be categorized as Transfers.

 

You'll only mark the income that's not part of your self-employed work as Personal. This includes earnings from others who share your bank accounts, personal transactions, and deposits, such as regular paychecks from an employer. 

 

To help streamline the review and categorization process of your transactions, I'd recommend reading these articles:

 

Stay in touch with me if you have to need more help in managing your transactions. I've got you covered.

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