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Paying myself - Transfer Money from Business Bank Account to Personal Bank Account

BernieBBernieB Member Posts: 6

What is the proper way to record a quarterly payment that I make to myself from my business? I make this payment by electronically transferring money from my business checking account to my personal savings account. My business checking account is linked to Wave so the withdrawal is automatically downloaded from my bank. My personal savings account is not linked to Wave and I don't want it to be linked to Wave.

Advice on handling this would be much appreciated.

in Accounting Technical Support

Comments

  • MikegMikeg Member Posts: 995 ✭✭✭

    @BernieB,
    I can only speak from a US perspective. If you are a sole proprietor or single member LLC, then you would classify the payment as an owners draw. If you are an S-Corp, you should be paying yourself through regular payroll. Any excess amounts would be treated as a distribution (owners draw).

    edited September 29, 2019
  • BernieBBernieB Member Posts: 6

    OK, thanks. I am sole proprietor in US.

  • MikegMikeg Member Posts: 995 ✭✭✭
    Then you classify as an owners drawing.
    edited September 30, 2019
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