As a QuickBooks Pro Advisor I am asked this question a lot. Hector gave me the tools to help explain this complex topic to my clients, whether they're lawyers or Etsy shop owners. Thank you Hector!!
Hi , Well, I did buy a version of Quikbooks and never got it set up this year. Now it is Dec. 6, 2022. I just watched your video. I had asked my CPA about an S corp 2 years ago. He said that he did not think I made enough money to even think about that. While it is true that I do net very little money now. I do have 2 new rentals that are currently not generating anything till I get some folks to rent them. Then I have 2 new RV Pads that are almost done, missing the electric meters at over $4k , and that is exactly why. I did sell a home near my CPA and did a 1031 exchange for one of the rentals. Anyway, every video I have seen with you and atleast 3 other Tax people, all say, "
Finally! An instructive video that goes beyond the manipulative techniques of punching a keyboarded spreadsheet of the latest version of Quickbooks to the more nuanced message of how the government views compensation.
Hey Hector. I took a quickbooks class with you many years ago. I was googling and your video came up as the best answer. I knew it was you before you said your name. You may not remember me but I remember you.
@@HectorGarciaCPA YES! You do remember me. You are very consistent. I follow you on LinkedIn too. Keep it up, Rockstar! Maybe I could interview you for my TV channel on Roku? I have a show on Roku - Christians and Money. If yes, my email is support@trudybeerman.com
Good job, my firm does payroll for 155 clients. We like 70-75% payroll 25-30% shareholder distributions. Also pensions are controlled by salary paid to the shareholders only. Draws/Distributions are not earned income and do not help for SEP contributions. I know that you know that but you may want to add that topic to your next one.
It really depends on the type of tax entity. Only the S Corpration will require a salary. Sole proprietorship and partnerships cannot pay salaries to the owners
All very interesting. I've been in business since 1987 and started using Quick Books in 1998. I've never drawn a salary as my income has never been consistent. I've always paid estimated tax and relied on an accountant for tax preparation. I record all compensation as Owners Capital Draws and became an LLC years ago operating as a single person. My Accountant has usually had me upload an Accountant's copy file. I expect that he knows more about the tax implication's than I do. Last year was the 1st time he didn't make any adjustments to the company file. I hope that it's because he didn't think it was needed rather than a reluctance of paying a much higher fee for his QB copy like the business owners did!
@@stevebabiak6997 He doesn't, it's small companies like mine that are being extorted by Intuit, and as it turns out I was negligent in getting my company file prepared properly which is my responsibility, not his! He pointed out a few things that I should have had kept up to date but didn't. And agreed that Intuit is really taking advantage of small companies like mine!
Hector awesome job on your teaching method. The flow was easy to follow. You kept my attention. Your information was taught in terms everyone could understand. Your appearance and your hand gestures provided a sense of trust, truth, without influence towards any one direction. Great Job. Quick question, the owner i work for pulls out monies whenever, post cash payments but keeps the cash, and charges personal items on company credit card to compensate his pay. What is the best way to calculate 60% of his earnings for child support payments if owner uses this method to pay himself.
I have always thought pay yourself as you would any employee, in the form of a check. I've seen a few companies go under for looking at the companies money as their money. They should always be separate and recorded as such.
As the owner of a S Corp I pay myself a a salary that’s got payroll taxes withheld. When I take a draw I have my accountant withhold tax so I’m not having to pay it at the end of the year
The term trade or business generally includes any activity carried on for the production of income from selling goods or performing services. It is not limited to integrated aggregates of assets, activities, and goodwill that comprise businesses for purposes of certain other provisions of the Internal Revenue Code. Activities of producing or distributing goods or performing services from which gross income is derived do not lose their identity as trades or businesses merely because they are carried on within a larger framework of other activities that may, or may not, be related to the organization's exempt purposes.
Great value from a great person. Thanks Hector for providing your wisdom and thanks to Intuit for partnering with you and making these videos possible.
Hector. I have more questions. It was great to listen to someone who explained terms that they use. I am just starting my business and don't want to make the mistakes I made before.
I like the video makes me feel more confident and gives me the tools to explain to my clients. Thank you, Hector and I look forward to your other videos.
hector - best way to designate your 401K and Roth contribution withdrawals from business account ? If you can show how to organize it in Quickbook. thank you
QUESTION: My client is an S corp. If we use payroll, then she would be the only employee. Everyone else is an independent contractor, so we set her up as a contractor for direct payments on a regular basis. Why would having the extra expense of a monthly payroll processing fee be a better option? Is it only a consideration of the taxes that would be paid by the corporation on all the income, and also by the owner as income tax? My client seems to think that an S Corp would save them tax dollars.
Hector this was a fantastic session. You have taken a very complex issue for new business owners and put it into understandable terms, decision to be made, and steps. Everyone should subscribe as I just did. I look forward to your other videos. Thanks!!!!
I'm back. Please check out the following article with details on how to set up and pay owner's draw: quickbooks.intuit.com/learn-support/en-us/help-article/chart-accounts/set-pay-owner-draw/L3AN10JVe_US_en_US. Please let me know if this helps. ^Kailah
@@quickbooks Kinda. I understand the concept but I'm looking to do both payments electronically. If I pay myself the salary with Direct Deposit and then transfer funds between my checking accounts at my bank, can I categorize that transfer as a Draw? This way it eliminates the need for the paper check.
My question has nothing to do with payroll but how to setup and handle credit card processing fees, such as Square into QuickBooks Desktop. I don't have that many Square transactions so I will do all entries manually. Thank you!
Hey there, Rickey! Since you're planning on recording your Square transactions manually, you can do so by creating a Sales Reciept in QuickBooks Desktop with the sales total in a single line item, or with each individual sale as a line item on the Sales Reciept. Then the total for the processing fees that Square charges can be entered in a line item as a negative dollar amount to decrease the overall total of the transaction. You can also consult with an Accountant/CPA to see if they have any suggestions on best practices when recording these types of transactions for your particular business. Hope this helps! ^Faith
Thank you for your helpful tips. Might I ask if you have someone in NYC that you would recommend for accounting services for my Juice bar? We use quickbooks for payroll and accounting. Thank you. Bryan Ware
Does this apply in the UK? How do you pay yourself a salary as the owner of a business in the UK? Does the salary get paid out of the revenue or the net profit of the company? The salaries of my employees will be paid out of the revenue, but what about my salary? Am I entitled to choose exactly how much salary I get (assuming the business can afford it)? Does the salary get paid into my personal bank account, or should I set up another limited company business and bank account (separate from the business that I own) in order to pay my salary into? How is my salary taxed? I am in the UK btw.
Outstanding presentation! I use QB to track income/expenses between an S Corp (motel) and our LLC (the motel property owner). I’m set up exactly as you describe :-))
For small business, factor in social security strategy. The min to earn credit is 1510 per quarter? Also, wages up to a certain point, 10k/ year, I am not sure on this, have high payback, above some point, you are largely subsidizing poor people
No problem at all. You could create a journal entry by debiting the "Owner's Draw" equity account and crediting the cash account. However, in QuickBooks, it's recommended to follow the steps in the article below. I hope this helps. -Karey quickbooks.intuit.com/learn-support/en-us/help-article/chart-accounts/set-pay-owner-draw/L3AN10JVe_US_en_US?uid=m61ctqmf
How is it best to categorize an Owners Draw for "Cash" in QBO? Sometimes "Cash " Can also be made out to other things so can't create a rule necessarily...
That's a great question, Christina. You can create an Owner's Equity account to track payments in QuickBooks using these steps: (quickbooks.intuit.com/learn-support/en-us/help-article/chart-accounts/set-pay-owner-draw/L3AN10JVe_US_en_US). Wishing you all the best. -Karey
Excellent explanation. Hello Hector. Could you please tell me why we can not word remotely with QB Enterprise? We used to work simultaneously tow users with QB Pro. We have license for 2 users. Thanks.
This sounds like something our Desktop Team can assist you with! You'll find their contact info here: quickbooks.intuit.com/learn-support/en-us/help-article/account-management/contact-quickbooks-desktop-support/L9d0ZUCrC_US_en_US. All the best.
You're welcome! We have a ton of video demonstrations here on youtube but also have a community page that can assist you with commonly asked questions, tips with QuickBooks and more(community.intuit.com).
Hi thank you for this video. I think my CPA got me into a jam. From Jan to June 2023 I was paid 1099 income under my own SSN. In July, I finally got an S-corp set up with a new TIN. To get caught up on paying my taxes for my 1099 income under my own SSN, the CPA office set up deductions for Federal and State taxes out of my S-corp checking account that is under the TIN and I fear the payments are for income under the S-corp TIN, not my personal SSN. It just dawned on me as I watch this video that I am probably delinquent on tax payments for my 1099 income. Do you have any advice other than finding a new CPA?
Hi Hector what should I do if I have negative numbers on Owners draws, on the balance sheet. I was trying to do a journal entry to cero out the petty cash account and owners contribution, it did cero out those accounts but then increases the owners draws
He mentioned estimated taxes for state and Federal and self employment taxes. I'm sure he misspoke, but no estimated taxes necessary for SE income if you are an S Corp. If a single member LLC, sole prop then yes estimates for all 3.
As a self employed business is it possible I can set up quick books to deposit money to me through by business but set up to we’re it takes 15.3 percent each deposit to keep up with the quarterly pay
Q: I started my business and purchased all equipment and vehicles to setup the business outright. It consist of a vehicle and floor cleaning equipment which was purchased by me to setup the business. Now, I give these assets to the business and want to draw against the value I spent until I get my money back on the initial investment. How do I add those assets and their value to quickbooks online? how do I draw against their value? I do not see how to do this with the QB online. The desktop software is much easier to do this but I am working with the online software now and don't see how to add fixed asset.
This is a really great question, Steve. The way you'll record these business items/equipment that have already been paid for will be determined by whether or not you consider them fixed assets or depreciating assets to your business. It's best to consult with an Accountant/CPA on the best practices on recording this for your particular business/business type, but we do have a few resources that may help clarify how this can be recorded in QBO. For more information about recording and accounting for Fixed Assets, you can visit: quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/how-do-i-post-a-payoff-on-fixed-asset-with-a-lien-paid-off-by/00/228489. For info on Depreciating Assets, you can check out: quickbooks.intuit.com/learn-support/en-us/help-article/liability-accounts/depreciate-assets-quickbooks-online/L5UV9dNoI_US_en_US?uid=l5jpmcvb. ^Faith
Thank you. My payroll question has to do with syncing Quickbooks Time with QBO Payroll. When I approve and export my hours to QBO from Time, I have problems. The hours never match. I will unapproved and approve repeated times over, to see if that fixes it, and the hours that appear in QBO even change from what they were the previous time I approved and exported the SAME HOURS IN TIME. To clarify, I did not change them in Time, I only unapproved and (re)approved them, and they changed in QBO. This makes me so frustrated with QB. Any ideas?
Is it necessary to have to pay (using any of the methods)? I'm a single member LLC and do consulting/programming services - so zero real expenses. I haven't taken any money out of the LLC - no need to, I have other income streams that satisfy my monthly needs. So is it a negative to just let the LLC bank account continue to grow? I'm sure some day I'll want to take a draw but that could be months/years from now. Currently my LLC generates < $100k per year, it might...maybe hit that point this year.
This guy rocks! Explains things so clearly and at a level that "non-accountants" can understand.
You're most welcome. Please know my team and I are always here to help. ^Alex
As a QuickBooks Pro Advisor I am asked this question a lot. Hector gave me the tools to help explain this complex topic to my clients, whether they're lawyers or Etsy shop owners. Thank you Hector!!
awesome!
I can't believe how long it took me to find this video. Thank you so much. This was so helpful.
not all the way through the video but best piece of advice so far is between 3:00 and 4:00
I am becoming a LLC in a few years. I will be buying the company i work for and this has helped me understand thank you
Hands down, Hector is a great teacher and accountant. Thank you for this video!
Hands down... I see what you did there.
I k
@@St.CrimsonTweets pun intended
Hi , Well, I did buy a version of Quikbooks and never got it set up this year. Now it is Dec. 6, 2022.
I just watched your video. I had asked my CPA about an S corp 2 years ago. He said that he did not think I made enough money to even think about that. While it is true that I do net very little money now. I do have 2 new rentals that are currently not generating anything till I get some folks
to rent them. Then I have 2 new RV Pads that are almost done, missing the electric meters at over $4k , and that is exactly why. I did sell a home near my CPA and did a 1031 exchange for one of the rentals. Anyway, every video I have seen with you and atleast 3 other Tax people, all say, "
Just had my QB Live Bookkeeper clean up and now time to choose a structure change after being a DBA for >15 years. Love and appreciate your videos!
I learned more from Hector's video than from my accountants/tax person! So happy I found this video!
Finally! An instructive video that goes beyond the manipulative techniques of punching a keyboarded spreadsheet of the latest version of Quickbooks to the more nuanced message of how the government views compensation.
I am glad you liked it!
Hey Hector. I took a quickbooks class with you many years ago. I was googling and your video came up as the best answer. I knew it was you before you said your name. You may not remember me but I remember you.
Wow, that was a decade ago! I remember you and your mom... its was at my Davie Training center...
@@HectorGarciaCPA YES! You do remember me. You are very consistent. I follow you on LinkedIn too. Keep it up, Rockstar! Maybe I could interview you for my TV channel on Roku? I have a show on Roku - Christians and Money. If yes, my email is support@trudybeerman.com
Hi Trudy!!! Do you remember me?
@@pausefornow Primerica
Thank you hector for lending us your helpful hands. ✋🤚
As business owner, I encourage my employees to take an "all hands on deck" approach to get the job done. Thank you Hector for your advice! 😉
"All hands" on deck 😂🤣
I found this to be easy to follow and get set up. also step by how to instructions are great.
Good job, my firm does payroll for 155 clients. We like 70-75% payroll 25-30% shareholder distributions. Also pensions are controlled by salary paid to the shareholders only. Draws/Distributions are not earned income and do not help for SEP contributions. I know that you know that but you may want to add that topic to your next one.
Hector you are phenomenal! This Video is Totally on-point!
I have to hand it to you, this information is super valuable and will come in handy as I finish out this 2022 mowing season!! Thank you!!
It really depends on the type of tax entity. Only the S Corpration will require a salary. Sole proprietorship and partnerships cannot pay salaries to the owners
Excellent point and very true
All very interesting. I've been in business since 1987 and started using Quick Books in 1998. I've never drawn a salary as my income has never been consistent. I've always paid estimated tax and relied on an accountant for tax preparation. I record all compensation as Owners Capital Draws and became an LLC years ago operating as a single person. My Accountant has usually had me upload an Accountant's copy file. I expect that he knows more about the tax implication's than I do. Last year was the 1st time he didn't make any adjustments to the company file. I hope that it's because he didn't think it was needed rather than a reluctance of paying a much higher fee for his QB copy like the business owners did!
If your accountant has lots of business clients, he will have zero reluctance in paying for his version of QB.
@@stevebabiak6997 He doesn't, it's small companies like mine that are being extorted by Intuit, and as it turns out I was negligent in getting my company file prepared properly which is my responsibility, not his! He pointed out a few things that I should have had kept up to date but didn't. And agreed that Intuit is really taking advantage of small companies like mine!
Tons of Value in this!! Thank you for making this!
Hector awesome job on your teaching method. The flow was easy to follow. You kept my attention. Your information was taught in terms everyone could understand. Your appearance and your hand gestures provided a sense of trust, truth, without influence towards any one direction. Great Job. Quick question, the owner i work for pulls out monies whenever, post cash payments but keeps the cash, and charges personal items on company credit card to compensate his pay. What is the best way to calculate 60% of his earnings for child support payments if owner uses this method to pay himself.
I have always thought pay yourself as you would any employee, in the form of a check.
I've seen a few companies go under for looking at the companies money as their money. They should always be separate and recorded as such.
OUTSTANDING VIDEO..Answered a BUNCH of questions for me!!THANK YOU!
As the owner of a S Corp I pay myself a a salary that’s got payroll taxes withheld. When I take a draw I have my accountant withhold tax so I’m not having to pay it at the end of the year
Great advice!! What percentage of taxes does your accountant withhold?
What's the IRC definition of a trade or business?
The term trade or business generally includes any activity carried on for the production of income from selling goods or performing services. It is not limited to integrated aggregates of assets, activities, and goodwill that comprise businesses for purposes of certain other provisions of the Internal Revenue Code. Activities of producing or distributing goods or performing services from which gross income is derived do not lose their identity as trades or businesses merely because they are carried on within a larger framework of other activities that may, or may not, be related to the organization's exempt purposes.
Wonderful! Just started SCorp
EXCELLENT presentation, thank you, I'll follow this presenter!
Glad you enjoyed the video, Gail! ^Emma
Hector is a great teacher and accountant. thank you for this video!
Very Informative and easy to understand!
You are very knowledgeable and expert.
So as a sole proprietorship would you define owner draw as equity being taken out of the business when entering it in QB?
Great value from a great person. Thanks Hector for providing your wisdom and thanks to Intuit for partnering with you and making these videos possible.
I wonder what is recommended for single-member LLC's? Owner's draw treating profits as pass-through income.
Hector. I have more questions. It was great to listen to someone who explained terms that they use. I am just starting my business and don't want to make the mistakes I made before.
Thank you. Age me a lot to think of. Glad I found your video.
Very clear explanations!
Thank you, for the first time I understand this....
Thank you. Very informative. what is the entry to book owners draw, advance?
Very helpful video, actually all Hector's videos are very helpful and in my opinion the best.
Super-clear, thank you Hector. Terrific and very helpful!
Excellent information. Thank you! Almost done with accounting degree 🙂
So being in a LLC partnership is ok to pay myself and other partner by Owner Draw and categorize it as Partner distributions?
Clear and logical, I can't appreciate more on professional knowledgeable video like this, THANK YOU!
Hector, thank your for sharing. Do you have a video on creating W2’s for owners taking owner draws?
I like this guy I feel like I’m in good hands.
Made me lol
🤣
He seems like a person who would be a very good helping hand!
Hector, you are amazing, thanks for the videos
Great video Hector! Your explanations are clear and concise. I appreciate it!
I like the video makes me feel more confident and gives me the tools to explain to my clients. Thank you, Hector and I look forward to your other videos.
hector - best way to designate your 401K and Roth contribution withdrawals from business account ? If you can show how to organize it in Quickbook. thank you
This guy has huge hands.
🤣🤣🤣
Favorite CPA
In speaking of equity, why is personal healthcare considered equity or under the equity category?
Another great video! Thanks Hector :)
Hector is amazing. I’m a huge fan of his videos.
QUESTION: My client is an S corp. If we use payroll, then she would be the only employee. Everyone else is an independent contractor, so we set her up as a contractor for direct payments on a regular basis. Why would having the extra expense of a monthly payroll processing fee be a better option? Is it only a consideration of the taxes that would be paid by the corporation on all the income, and also by the owner as income tax? My client seems to think that an S Corp would save them tax dollars.
Hector this was a fantastic session. You have taken a very complex issue for new business owners and put it into understandable terms, decision to be made, and steps. Everyone should subscribe as I just did. I look forward to your other videos. Thanks!!!!
love it! thanks
Nice job, well done!
Great video for first time small business owner! Very helpful information.
Glad it was helpful! ^Emma
I need to pay myself both a salary and owner's draw. QB support is no help. How do we do both?
I'll look into my resources and give you an update shortly. ^Kailah
I'm back. Please check out the following article with details on how to set up and pay owner's draw: quickbooks.intuit.com/learn-support/en-us/help-article/chart-accounts/set-pay-owner-draw/L3AN10JVe_US_en_US. Please let me know if this helps. ^Kailah
@@quickbooks Kinda. I understand the concept but I'm looking to do both payments electronically. If I pay myself the salary with Direct Deposit and then transfer funds between my checking accounts at my bank, can I categorize that transfer as a Draw? This way it eliminates the need for the paper check.
My question has nothing to do with payroll but how to setup and handle credit card processing fees, such as Square into QuickBooks Desktop. I don't have that many Square transactions so I will do all entries manually. Thank you!
Hey there, Rickey!
Since you're planning on recording your Square transactions manually, you can do so by creating a Sales Reciept in QuickBooks Desktop with the sales total in a single line item, or with each individual sale as a line item on the Sales Reciept. Then the total for the processing fees that Square charges can be entered in a line item as a negative dollar amount to decrease the overall total of the transaction.
You can also consult with an Accountant/CPA to see if they have any suggestions on best practices when recording these types of transactions for your particular business.
Hope this helps!
^Faith
I wish this video would have been around when we started our first business. Very informational.
Thank for the overview. This was very helpful!
Great presentation, direct and complete information on this topic, many thanks.
Thank you for your helpful tips. Might I ask if you have someone in NYC that you would recommend for accounting services for my Juice bar? We use quickbooks for payroll and accounting. Thank you. Bryan Ware
Exactly what I was looking for!!!! Thx
We're glad to hear that this video helped! Have a wonderful day. -Kyle
Great information! Do you have video's regarding payroll taxes for nonprofits, 501 (c ) 3, and paying yourself as a nonprofit Executive Director?
Does this apply in the UK? How do you pay yourself a salary as the owner of a business in the UK? Does the salary get paid out of the revenue or the net profit of the company? The salaries of my employees will be paid out of the revenue, but what about my salary? Am I entitled to choose exactly how much salary I get (assuming the business can afford it)? Does the salary get paid into my personal bank account, or should I set up another limited company business and bank account (separate from the business that I own) in order to pay my salary into? How is my salary taxed? I am in the UK btw.
Outstanding presentation! I use QB to track income/expenses between an S Corp (motel) and our LLC (the motel property owner). I’m set up exactly as you describe :-))
As an S corp can we rent our home office to the business? We have 1 employee and do not need the extra expense of renting elsewhere.
For small business, factor in social security strategy. The min to earn credit is 1510 per quarter? Also, wages up to a certain point, 10k/ year, I am not sure on this, have high payback, above some point, you are largely subsidizing poor people
Thank you Hector. btw, where did you get that record player stand in the background? Its super cool!
Thank you. Can I just make a journal entry: Dr. Salary expense Cr. Bank account? Probably not, because the net income won't be reduced
No problem at all. You could create a journal entry by debiting the "Owner's Draw" equity account and crediting the cash account. However, in QuickBooks, it's recommended to follow the steps in the article below. I hope this helps. -Karey
quickbooks.intuit.com/learn-support/en-us/help-article/chart-accounts/set-pay-owner-draw/L3AN10JVe_US_en_US?uid=m61ctqmf
How is it best to categorize an Owners Draw for "Cash" in QBO? Sometimes "Cash " Can also be made out to other things so can't create a rule necessarily...
That's a great question, Christina. You can create an Owner's Equity account to track payments in QuickBooks using these steps: (quickbooks.intuit.com/learn-support/en-us/help-article/chart-accounts/set-pay-owner-draw/L3AN10JVe_US_en_US). Wishing you all the best. -Karey
I find that when you own a small business it becomes your life and all is intertwined.
You become the "master". You have two choices in life....master....or....slave.
Excellent explanation. Hello Hector. Could you please tell me why we can not word remotely with QB Enterprise? We used to work simultaneously tow users with QB Pro. We have license for 2 users. Thanks.
This sounds like something our Desktop Team can assist you with! You'll find their contact info here: quickbooks.intuit.com/learn-support/en-us/help-article/account-management/contact-quickbooks-desktop-support/L9d0ZUCrC_US_en_US. All the best.
That you so much. Very helpful information and works perfectly.
Hector would the company be able to pay for the owner's house payment.
error at 5 min, S corp owners do not pay self employment tax, that is why IRS wants you to pay a 'reasonable salary'
This guy's hands are huge!!!
Thanks a lot... Now I can't stop staring...
Thank you Hector. This is exactly what I was looking for. Thanks for all the Valuable information. 🙂
Thanks! This was explained quite well, salary and draws!
Thank you for this easy to follow explanation. SUBSCRIBED!!!!!! Thanks you again
You're welcome! We have a ton of video demonstrations here on youtube but also have a community page that can assist you with commonly asked questions, tips with QuickBooks and more(community.intuit.com).
Hi thank you for this video. I think my CPA got me into a jam. From Jan to June 2023 I was paid 1099 income under my own SSN. In July, I finally got an S-corp set up with a new TIN. To get caught up on paying my taxes for my 1099 income under my own SSN, the CPA office set up deductions for Federal and State taxes out of my S-corp checking account that is under the TIN and I fear the payments are for income under the S-corp TIN, not my personal SSN. It just dawned on me as I watch this video that I am probably delinquent on tax payments for my 1099 income. Do you have any advice other than finding a new CPA?
I’m assuming it’s the net profit not gross that determines tax liability?
Thanks Hector for another great video You are my go to when I need to resolve issues...
Hi Hector what should I do if I have negative numbers on Owners draws, on the balance sheet. I was trying to do a journal entry to cero out the petty cash account and owners contribution, it did cero out those accounts but then increases the owners draws
He mentioned estimated taxes for state and Federal and self employment taxes. I'm sure he misspoke, but no estimated taxes necessary for SE income if you are an S Corp. If a single member LLC, sole prop then yes estimates for all 3.
Hector, Please send me a link or reply with how I can speak with you regarding learning more about QB and their suite of programs.
As a self employed business is it possible I can set up quick books to deposit money to me through by business but set up to we’re it takes 15.3 percent each deposit to keep up with the quarterly pay
Q: I started my business and purchased all equipment and vehicles to setup the business outright. It consist of a vehicle and floor cleaning equipment which was purchased by me to setup the business. Now, I give these assets to the business and want to draw against the value I spent until I get my money back on the initial investment. How do I add those assets and their value to quickbooks online? how do I draw against their value?
I do not see how to do this with the QB online. The desktop software is much easier to do this but I am working with the online software now and don't see how to add fixed asset.
This is a really great question, Steve.
The way you'll record these business items/equipment that have already been paid for will be determined by whether or not you consider them fixed assets or depreciating assets to your business. It's best to consult with an Accountant/CPA on the best practices on recording this for your particular business/business type, but we do have a few resources that may help clarify how this can be recorded in QBO.
For more information about recording and accounting for Fixed Assets, you can visit: quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/how-do-i-post-a-payoff-on-fixed-asset-with-a-lien-paid-off-by/00/228489.
For info on Depreciating Assets, you can check out: quickbooks.intuit.com/learn-support/en-us/help-article/liability-accounts/depreciate-assets-quickbooks-online/L5UV9dNoI_US_en_US?uid=l5jpmcvb.
^Faith
Thank you for the Ukraine initiative especially during these current circumstances. It made me smile. Good move.
Is Owner Draw of a LLC subject to self employment tax
Hey @Hector is there business using Quickbooks in El Salvador for accounting legal reporting? Thanks in advance
Thank you. My payroll question has to do with syncing Quickbooks Time with QBO Payroll. When I approve and export my hours to QBO from Time, I have problems. The hours never match. I will unapproved and approve repeated times over, to see if that fixes it, and the hours that appear in QBO even change from what they were the previous time I approved and exported the SAME HOURS IN TIME. To clarify, I did not change them in Time, I only unapproved and (re)approved them, and they changed in QBO. This makes me so frustrated with QB. Any ideas?
if you move the telaprompter over to the right a bit, then this will feel much more like he is making better eye contact with the viewer.
Very handy information!
Hector I am an single member LLC. So do I look at my status as a sole proprietor? Meaning I should do owners draw?
Greatful for Hector!!
Is it necessary to have to pay (using any of the methods)? I'm a single member LLC and do consulting/programming services - so zero real expenses. I haven't taken any money out of the LLC - no need to, I have other income streams that satisfy my monthly needs. So is it a negative to just let the LLC bank account continue to grow? I'm sure some day I'll want to take a draw but that could be months/years from now. Currently my LLC generates < $100k per year, it might...maybe hit that point this year.