I give two friends half my profit, what is that in Chart of Accnts?
I have quickbooks 2017 desktop version. I have just did a transfer of last years financials. I want to do my taxes but am intimidated by all the info in quickbooks. I have two business partners who don’t work with my business but share the profit with me. I write out checks to them and was wondering what I record in tansactions once bankfeeds are downloaded. Is the “payee” my friends name and the “account” is expense or vendor? I am stuck. How can quickbooks remember there name and account. I will hae to manually enter it each time.
Any distributions to partners should be coded to an account called Owner Draw on the chart of accounts. If this account is not set up, you need to create it. I have created a video tutorial that will show you how to set up a new account in QBO, click the link below to access the video. Yes, the name of the person that you are making the check out to belongs in the payee field. Once you make the first payment, QuickBooks will “remember” the next time you select the same payee it will automatically complete the account field and the amount field based on the last payment made; be careful with this because if the payment amount changes you need to fix it.
How to set up a new account in QBO: https://fitsmallbusiness.com/set-up-chart-of-accounts-quickbooks-online/
All the Best-
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