One of the best things about being your own boss is being able to pay yourself as much as you want, when you want. But how do you record these payments (AKA Owner's Draws or Withdrawals from Owner's Equity) in GoDaddy Bookkeeping?
Well here's how…
- Select “Expenses”, then “Add Transaction”
- Enter Date, Name, Amount, even Description
- From the “Category” drop-down menu, select “Owner’s Pay/Draw”
- Click "Save"
It's that easy to pay YOURSELF!
Keep in mind that payments to yourself will not affect your bottom line, and they won't change the total amount of profit that you claim for the year. You'll want to be careful to not accidentally categorize money you spend on yourself as an "Expense," which reduces taxable income and makes you more susceptible to audits. Remember that business expenses can only offset business income.
*** For specific questions about the kinds of things that you should be careful with, please talk to your attorney, accountant or CPA.