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Recently Asked: Tranferring funds from business line of credit to business owner

  
  
  
Recently Asked: How do I transfer funds from the business line of credit to the business owner?

I’ll break your question down to two main steps: transferring the funds from your business line of credit to a company checking account and then disbursing the funds to the owner.

Step 1: Transfer funds from business line of credit to checking account

Go to the bank menu and select Transfer Funds.

  1. Select the Date of the transfer.
  2. From the Transfer Funds From drop down select Line of Credit.
  3. From the Transfer Funds To drop down select Company Checking account.
  4. Select which Class from the drop down (if applicable).
  5. On the Transfer Amount $ line, type the amount of the funds to transfer.
  6. In the Memo field, type a description of the transaction (optional).
  7. Click Save & Close.

This procedure transfer the funds out of the line of credit and places the funds into the checking account. Please note, these steps only transfers the funds within QuickBooks. To physically move the funds out of the line of credit into the checking account contact your bank for directions.

Step 2: Disbursing the funds to the owner

Go to the bank menu and select Write Checks.

  1. From the Bank Account drop down, select the checking account you used in Step 1 above.
  2. Select the Date you are issuing the check.
  3. From the Pay to the Order of drop down, select the owner.
  4. On the amount line, type the amount of the funds you are disbursing to the owner.
  5. In the Memo field, type a description of the transaction (optional).
  6. Make sure the Expense tab is selected.
  7. From the Account column drop down, select either an owner receivable or an owner draw. (How your company is legally setup under IRS guidelines determines if the account is an owner receivable or an owner draw. If you need help determining this, contact your accountant or EHTC for assistance.)
  8. The Amount field should auto fill; if it doesn’t, type in the amount of the check.
  9. In the Memo field, type a description of the transaction (optional).
  10. Select which Job and Class from the drop downs (if applicable).
  11. Click Save & Close.
  12. Print the check.

If you found this information helpful, please consider leaving feedback via my QuickBooks ProAdvisor Site. Thanks!

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