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

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  • Updated 3 months ago
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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.

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Geoff Bryant

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Posted 3 months ago

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Tanya Briggs, Accredited Partner

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As a sole trader, the payments are drawings.  Have a look at your chart of accounts in the equity area for a suitable account .
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Geoff Bryant

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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

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Tanya Briggs, Accredited Partner

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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.
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Geoff Bryant

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Awesome, thanks heaps for your help Tanya.