View Full Version : Budget Catagory when Paying yourself
jmotley
10-14-2012, 08:43 PM
Following up on the information on this thread... http://www.small-business-forum.net/accounting-taxes/7292-how-do-i-pay-myself.html
I am making large $750-1000 deposits from Business account to Personal Account when needed. What budget category should I use when making this deposit? Is it just a Transfer? Should I call it "Salary from Business"? Or something else...
Thanks in Advance..
vangogh
10-15-2012, 02:08 AM
As Evan mentioned in the thread you linked to you'd be taking a "draw" when you transfer money from business account to personal account. I'm guessing that might be the category you would use. I'm not an account though, so when I say guessing, I do mean guessing.
Freelancier
10-15-2012, 10:01 AM
It's not a transfer, which implies something within the business. Salary or payroll should be fine. All that matters is that when it comes time to do your taxes, you know what the category means and apply it correctly to the right page and line number. I think you may be best served by visiting for a couple of hours with a small business accountant. The cost will be about $200, but the return on that expense will turn out to be huge.
Pack-Secure
10-15-2012, 10:49 AM
If you are a partnership it is generally termed Guaranteed Payment.
It's not an expense, it's an Equity account called "Owners Draw"
vangogh
10-15-2012, 10:49 PM
I guess my powers of guessing are pretty good. Easier when I could rely on something you said. :)
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.