I am a sole trader, how do i allocate the wage i pay myself each week?

Geoff Bryant
Geoff Bryant Member Posts: 59 ✭
edited June 2018 in Reckon One

I run a gardening business and as from 1st of July 2018 I want to start paying myself a fixed amount each week from the business, instead of taking money as I need it.

What is the best way to allocate this payment in Reckon One, is it directors fees, or what else?

Thanks,

Geoff.

Comments

  • Tanya Briggs
    Tanya Briggs Accredited Partner Posts: 75 Accredited Partner Accredited Partner
    edited June 2018
    As a sole trader, the payments are drawings.  Have a look at your chart of accounts in the equity area for a suitable account .

  • Geoff Bryant
    Geoff Bryant Member Posts: 59 ✭
    edited June 2018

    Thanks Tanya,

    I only have 3 accounts under Equity and they are, Equity, Opening Balance Equity and Retained Earnings Surplus/(Accumulated Losses). I don't think any of those would be suitable

  • Tanya Briggs
    Tanya Briggs Accredited Partner Posts: 75 Accredited Partner Accredited Partner
    edited June 2018
    Hi Geoff, add a new Equity type account to your Chart of Accounts.  Call it Drawings.  Your Accountant may have an account number they wish you to add to the account as well.
  • Geoff Bryant
    Geoff Bryant Member Posts: 59 ✭
    edited June 2018
    Awesome, thanks heaps for your help Tanya.

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