Thursday, 8 June 2017

Recording Cash withdrawals in QuickBooks

If you are a business owner, then certainly you would have to make withdrawals for various purposes. There can be several purposes for withdrawals like to have cash in hand or paying themselves. It is important to record the amount withdrawn in QuickBooks Software to show in the account from which you have taken the amount and also the account in which the cash was deposited. It would be called 'Draw' if you are a sole proprietor and 'Distribution' if your business is incorporation. 

Recording as a Draw-

  • With 'Owner Draws' create an equity account. On the top menu bar, click List and then open Chart of Accounts. Scroll down to the Chart of Accounts and click on it.
  • Now press and hold CTRL + N keys. Search for 'Equity' under 'Type' and select it. Then select Continue option. You will see a new window of Add new account.
  • In the Name box, enter Owner's draw. Use the term 'Shareholder Distributions' if your business is incorporated. Adding the description and note portions are optional so you can skip it if you want. Until and unless you are not familiar with the accounting terms, you can leave Tax-Line Mapping box blank.
  • From the top menu bar go to Banking option. Then scroll to transfer funds option and click on it. Once you see the window, enter all the details of the transfer from Checking to Draws.
  • In the Transfer Funds From box, select Checking account. Scroll down to Checking account by clicking the arrow. From Transfer, Funds To select Draws account. Go to Draws account after clicking it.
  • Now, in the Transfer Amount box enter the withdrawal amount. Close the window after clicking Save & Close.

Call QuickBooks Support New Zealand for further details about the same at +64-04-8879113.
If you are facing any difficulty with the accounting software and looking for assistance and guidance then get in touch with the expert's team of QuickBooks customer support number +64-04-8879113 and let them help you in fixing out the issues. You can also contact the team via live chat or email as they are available there for 24/7.

Read More: - How to upgrade Quickbooks Pro for Advancing to Premier Level

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