Paying Yourself - How to Record The Transaction in QuickBooks Online

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Paying Yourself - How to Record The Transaction in QuickBooks Online

I'm going to show you something that is awesome and easy to do in QuickBooks Online, we get a lot of questions about this.

Hey there, Samohay here, and I'm going to show you something that is awesome and easy to do in QuickBooks Online, we get a lot of questions about this. It's how do I record a payment to myself as the owner of the business in QuickBooks Online?

So it's super easy. We can pretty much automate this transaction and that's what I'm gonna show you today. So let's dive in. When you're in QuickBooks Online, you're gonna go to the gear icon in the top, right. Under Lists, you'll see reoccurring transactions .

We're gonna click on that and we're going to create a reoccurring transaction template so that we can easily record the payment to ourselves as often as we need, as we pay ourselves.

So you can do this in a couple ways. You can pay yourself by check. I'm gonna show you how to do it as a transfer, because that's the most common waythat we see owners pay themselves.

Keep in mind, this is not for a reporting payroll. This is for reporting distributions. All right, we'll click okay. So our template name will be Owner Pay. So we'll keep it Unscheduled. We're gonna transfer funds from our Business Checking Account into a Personal Account.

Now a personal account should not be in our business bookkeeping file. So we're gonna have to record it to equity, owners equity and it's not in here. It's not set up in this test drive files. So we're gonna create that account. Now, talk with your bookkeeper or CPA for the best way to do this.

I'm gonna show you an example here. We're gonna create an Equity Account Type and I will call it Member Distributions. And this is recording the money that you're taking, the profit that you're taking out of the company as your pay. Member Distributions, there we go. And we're gonna save and close.

So Transfer Funds to Member Distributions. We'll do $1,500. If that's what you're paying yourself regularly, if not just leave it as 0.00, Owner Pay and then we'll save template.

Alright, so here we go. Owner pay, unscheduled transaction type. It's gonna be a transfer from your Business to your Personal account. And we have it as $0.00 right now, because what we'll do is go in whenever we're ready to. Whenever we've made the transaction happen at the bank, we're gonna come into QuickBooks and click on Use, and let's say everything looks good.

We paid ourselves $1500 on August 12th and everything's good. Save and close. That way when the transaction comes through in your bank feed center, this lovely area here, it's gonna match up. You've already entered it. You're good to go. And that's how you do it. It's a super simple way to manage recording that transaction in QuickBooks Online.

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