Processing Payment to Vendor from Imported Checking

[Fran_3]

 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








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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...
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    On Sunday, February 4, 2018, 5:52:07 PM EST, Maf. King <maf at 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.