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Posted by Scott on March 21, 2007, 11:02 am
Please log in for more thread options >I just purchased quickbooks 2007 Pro, and spent some time over the
> weekend setting it up.
>
> I have a sole proprietorship. I'm the only person working in the
> business - no employees, very simple.
>
> I take care of all of my business expenses. My wife does all of our
> home / personal expenses.
>
> Money only goes between business and personal accounts when we
> regularly transfer money from the business checking account to our
> personal checking or savings account.
>
> Ideally, I'd tell quickbooks, "This money is gone - forget about it -
> wy wife will take care of it". Then my wife handles it from there -
> she keeps track of interest on our mortgage, etc.
>
>
> My problem is it looks like the "owner draw" account will just
> decrease forever. That, or my owner equity would increase forever.
>
> Am I missing something fundamental here, or does quickbooks also
> expect me to do all of my personal financial stuff in it as well?
>
>
> I'm sure once I figure this out I'll enjoy the program immensely. I
> really like the "reports" - really gives me an instant snapshot of who
> my biggest customers are, etc.
>
> Thank you for any help you might provide!
>
Usually the owner draw account is closed into retained earnings after the
end of the fiscal year, so the account only shows current year draws. Keep
in mind that Retained Earnings means just that, the earnings from the
business which have been retained for it's use. Owners draws reduce what is
retained, so should lower the Retained Earnings account. EOY debit R/E
credit Draw.
Scott out.
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