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Bakes53
May 23, 2024
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Owner Withdrawal

  • May 23, 2024
  • 1 reply
  • 0 views

Hi I'm a tiny new business.  I've made profit and being a sole trader, I've transferred money from my qb linked account to my personal account (not linked). I've put the transaction under "owners withdrawal".  My issue is that quickbooks doesn't take this from my balance but my personal bank account does.  My qb balance therefore doesn't reconcile with my bank.  What am I doing wrong ? I use self employed QB

Best answer by emmam6

Hello Bakes53, yes, any personal wages taken would be classed as owner withdrawal. As long as the income in Self Employed and the allowable and disallowable expenses are correct and the details in the tax profile are correct, so the income tax then calculates correctly. Therefore, the Tax Summary is correct for using to fill in your Self-Assessment at HMRC then that is fine.  More details on Self-Assessment in QuickBooks can be found here.

1 reply

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GeorgiaC
May 23, 2024

Hello and welcome to the QuickBooks Community, Bakes53

 

QuickBooks Self-Employed operates on the basis of a simple money-in, money-out cashbook without a reconciliation tool. With this, you simply need to categorise all transactions downloaded from your online bank account or entered into QuickBooks manually (as a Cash transaction).

 

When you categorise, QuickBooks puts your transactions on the correct line of your Schedule C/Tax Summary. This also organises your income and expenses, so you know what areas of your self-employed business have the biggest impact.

 

Personal wages taken from income made through your self-employed work should be categorised as Owners Withdrawal. For further information on categorising transactions in QuickBooks Self-Employed, see here.

 

I hope that helps to clarify your query. If you do have any further questions, please don't hesitate to reach back out to the Intuit QuickBooks Community for support. 

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Bakes53Author
May 23, 2024

Ok thank you. So I need not worry about the quickbooks balance not matching my personal account as long as I mark any monies taken out as owners withdrawal ? 

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emmam6Answer
May 23, 2024

Hello Bakes53, yes, any personal wages taken would be classed as owner withdrawal. As long as the income in Self Employed and the allowable and disallowable expenses are correct and the details in the tax profile are correct, so the income tax then calculates correctly. Therefore, the Tax Summary is correct for using to fill in your Self-Assessment at HMRC then that is fine.  More details on Self-Assessment in QuickBooks can be found here.

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