Maf, Thanks for the response and the info. In our case we are a small USA Sub S corp. I think I meant to say "distributions" and not "disbursements" ... so clearly no accountant here :-) Some info on USA Sub-S Corp's "distributions" here: Taking money out of an S corporation I think what we were looking for was how to account for a loan to a shareholder... and ended up putting it under Assets as it is money owed the business. Regardless, our use of gnuCash will be scrubbed at year end by a professional accounting firm... that said we want to be as close to 'correct' as possible :-) gnuCash is the next step in our accounting system process... 1 - left pocket, right pocket2 - paper and pencil3 - spreadsheets4 - gnuCash :-) I'm sure I will have more questions so thanks for the help all ! Fran3
| | | | Taking money out of an S corporation S corporation owners may take money out of the corporation in a variety of ways, such as in the form of wages an... | | | On Sunday, February 4, 2018, 5:52:07 PM EST, Maf. King <m...@chilwell.net> wrote: On Sunday, 4 February 2018 20:39:02 GMT Fran_3 via gnucash-user wrote: > Geert, > There are three ways (that I know of) for a shareholder or owner to get > money out of their business...1 - Pay themselves as an employee2 - Loan > themselves money3 - Discernment- which is like a "dividend" payment to > shareholders ( I think) But I'm no accountant... so someone else will > surely weigh in on this. When is gnuCash 3 going to be released? Hi Fran, I'm not an accountant (or lawyer) either, but I have to say that what you've written isn't my understanding of (UK) corporate law. I don't know where you are in the world, so the below may only be partially true for you. 1. a shareholder of a ltd company can't take a wage unless they are also an employee (directors are employees). Often in small & family firms the shareholders are directors, but the 2 roles are distinct & must not be conflated. If you're not clear about this, maybe talk to an accountant? 2. A loan. not really getting money out of the company, as it should be paid back in due course. there are (in the UK, at least) some pretty stringent anti-tax avoidance rules around loans, too. Record as something like Asset:Bank:Current -> Asset:LoansGiven:JoeBloggs 3. IIRC, the term you want might be disbursement. Yes, dividends are the usual way shareholders get money from a ltd (or plc) company. I record them as transfers to Expenses:dividends. My accountant has never complained. 4. you didn't mention selling shares. Again, a tax & legal minefield where professional advice is required. But it is a way of getting money as a shareholder. Note. I don't download transactions, so I'm not sure about this "assign as payment" workflow you talk about. All my transactions are either entered directly in the registers, or for bills / invoices through the "Process Payment" buttons which are outlined in the docs. HTH, Maf. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.