company accounts
How is the best way and what account should I use when setting up an account to pay myself (owner) other than payroll, like dividends.
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10/08/10 10:44am PDT
Viewed by asker 10/12/10 12:50pm PDT
Viewed by asker 10/12/10 12:50pm PDT
7 Replies
Safari818
Questions asked: 11
Questions answered: 12034
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Questions answered: 12034
Points earned: 25204
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10/08/10 2:09pm PDT
You must discuss this with your very own Competent Professional Accountant. The answer will depend on whether the business is incorporated or unincorporated; if a corporation: whether there are other shareholders, whether there are retained earnings, whether there are existing amounts payable to you from the corporation or from you to the corporation. Family relationships might provide additional options. There are simply too many alternatives to explore here.
10/08/10 9:32pm PDT
Thank you Safari, you are very correct, but unfortunately my accountant is not a quickbooks user and the answer from them was that they will address it at the end of the year, but in the mean time my accounts in quickbooks are not reflecting properly as I have money out and no where to properly put it.
I own a small business, not incorporated, and operate from home, my accountant has advised that because the business is very small and has very low income, that I should not put myself on payroll, so thus the reason for me asking the question.
10/08/10 10:32pm PDT
If you are not incorporated you cannot pay dividends, nor can you put yourself on salary. That leaves "Owner's Drawings", an Equity account.
Your accountant could have told you this faster than I did, the answer has nothing to do with using QuickBooks. I don't like to interfere with the relationship between accountant and client, but.........
10/08/10 11:19pm PDT
Hi Safari, thank you.
Yes well sometimes us small business men get too comfortable with our so called accountants, and just take what they say as the truth. So that is why people like you are helpful in educating people like me.
So if I set up this equity acc "owners drawings" it will basically show a minus figure, an easy way to track funds paid to myself for income tax purposes ?
10/09/10 9:46pm PDT
Yes, it will show a "minus" figure.
But it has no effect on your income taxes. You REALLY must talk to your accountant, or find another accountant.
10/12/10 11:21am PDT
Thank you.
I plan on doing this.
Can you recommend anyone that is great in Niagara Falls or Fort Erie ??
10/12/10 5:29pm PDT
Latest post
It's a big country. Sorry, I don't know anyone in that area.
You might start here: http://community.intuit.com/posts/find-a-pro-advisor
Also ask an Account Manager at your bank, ask a business associate.
