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If the owner of a business put his own money into a company, they can at a later date take the money out and not pay income tax on the money. In the the video below I show how to set up the accounts you need on QuickBooks to do this. The business owner puts the money into an equity account in QuickBooks. This account has separate sub-accounts for Owner’s Drawings and Owner’s Contributions.

In the video I encourage you to enter into QuickBooks any business related expenses as a bill, even if the owner has used his on money. QuickBooks only allows bills to be paid via a bank account or credit card. For this reason I suggest that you create a new bank account called Suspense just to allow the bill to be paid. The Suspense account is not a “real” bank account so it should always be zero. The video shows how to transfer the balance in to the owner’s contribution account.

At a later stage the owner can with draw his own money from the company without having to pay income tax. A payment from the current account can be made and this is linked to Drawings sub-account. All this is demonstrated in the video below: