Jane Reynolds 
As a small business owner, it’s important to correctly record your S-Corp distribution in QuickBooks. This will ensure accurate financial statements and tax filings. In this tutorial, we’ll walk you through the steps for recording S-Corp distribution in QuickBooks.
How to Record S-Corp Distribution in QuickBooks
To record S-Corp distribution in QuickBooks, follow these steps:
- Navigate to the "Banking" menu and select "Record Deposits"
- Select the appropriate bank account where the S-Corp distribution will be deposited
- Enter the date and select the payment method
- Enter "S-Corp Distribution" as the received from and the customer name
- Enter the distribution amount in the "Amount" field
- Select the equity account where the distribution will be recorded
- Enter any necessary notes or memos
- Click "Save and Close"
FAQ
How do I know which equity account to use for S-Corp distribution in QuickBooks?
Typically, the equity account used for S-Corp distribution is "Retained Earnings." However, it’s important to consult with your accountant to make sure you’re using the correct account for your business.
Can S-Corp distribution be recorded as an expense?
No, S-Corp distribution is not an expense. It’s a disbursement of profit to shareholders, which is why it should be recorded as equity in QuickBooks.
Key Takeaways
- To record S-Corp distribution in QuickBooks, navigate to "Banking" and select "Record Deposits"
- Use the appropriate equity account for S-Corp distribution (typically "Retained Earnings")
- S-Corp distribution should not be recorded as an expense
In conclusion, correctly recording S-Corp distribution in QuickBooks is crucial for accurate financial statements and tax filings. By following the steps outlined in this tutorial, you can ensure that your S-Corp distribution is recorded correctly. As always, consult with your accountant if you have any questions or concerns.
