Small business - takings by owner and taxes.

[Derek Atkins]

You misunderstand me.  This is just a reduction in equity.  It
has no bearing on Income or Expense.

-derek

Quoting Wouter van Marle <wouter at squirrel-systems.com>:

> On Wed, 2006-04-19 at 01:14 -0400, Derek Atkins wrote:
>> Checking -> Expenses:Capital Withdrawal
>
> The problem in this is that capital withdrawal is not an expense. It
> should not be deducted from the profits before tax.
> Or do I misunderstand you?
>
> Wouter.
>
>>
>> -derek
>>
>> Quoting Wouter van Marle <wouter at squirrel-systems.com>:
>>
>> > Hi all,
>> >
>> > As small business owner, I want to take some of the profits now and then
>> > for own use. In accounting terms, this is not a salary (as what I pay to
>> > my employee - this I can book directly as an expense), though it is
>> > taken out of (usually) the bank account of the business, but it is not
>> > an expense.
>> >
>> > How to book these transactions properly?
>> >
>> > Then I've a small issue with last year's tax. The 2005/06 tax year has
>> > just ended (the fiscal year starts on 1/4); but I only just got the tax
>> > payable over the '04/05 tax year. That should be an expense for the
>> > previous year, however the payment will be done in this year of course.
>> > Any easy way to correctly do this?
>> >
>> > Wouter.
>> >
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>>
>>
>
>



-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available