If you do not have a separate business bank account, then you can ignore this guide completely. The option for you to record a Takings payment will not be visible.
This guide will help you manage your Takings and personal payments effectively as a sole trader using Joy Pilot accounting software. Joy Pilot makes it easy to handle everyday financial transactions clearly and accurately, no matter where you are located. Following these simple steps will streamline the recording of your income, expenses, and personal cash withdrawals, ensuring your accounting is always up-to-date and accurate.
Properly managing income and payments gives you clear insights into your business’s performance and financial position. As a sole trader, it’s essential to keep detailed records of:
Money received (income from customers)
Money paid out (business expenses)
Money withdrawn for personal use (Takings)
If you’re transitioning from using one personal account for everything to a dedicated business bank account, managing Takings payments becomes a key step in staying organised. Joy Pilot simplifies this by letting you categorise these transactions clearly and confidently.
💡 Note: In this context, Takings refers to money you transfer from your business account to your personal account for personal use.
This is not a business expense or income—it’s recorded as Drawings, which is the correct accounting term for sole traders. It reflects a withdrawal of funds from the business by the owner, and does not affect your profit.
If you need to add a bank account before entering a Takings payment, please visit our guide here.
nitially, if you're operating without a separate business bank account, your personal account handles both personal and business transactions. In this setup, Takings payments aren’t recorded separately. However, once you have a business account, you’ll want to track any personal withdrawals—this is where Takings come in, and Joy Pilot helps you do that smoothly.
Step-by-step Guide to Managing Takings Payments
Step 1. Enable Banking Reconciliation:
Navigate to your profile menu by clicking on your name at the top right corner.
Select 'Business Info'.
Find the 'Banking Reconciliation' option and switch it from ‘Off’ to ‘Enabled’. This activates features for managing a separate business bank account.
Step 2. Recording Takings:
Go to the 'Business' dropdown menu on the top grey menu bar.
Click on 'Drawings'. Here, you'll manage the transfer of funds to your personal account.
Select the business bank account from which the funds will be drawn.
Choose the type of payment. Options include:
Drawings: Withdrawing earnings from your business.
Expense reimbursement: Compensating for business expenses paid from personal funds.
Loan from the business: When taking a personal loan of funds from the business.
Step 3. Pay Yourself:
After selecting the bank account and payment type as Drawings, enter the date and amount.
Save your entry. It appears in the Drawings List at the bottom of the page.
Step 4. Editing and Deleting Payments:
Within the Drawings List, find options to 'Sort', 'Delete', or 'Edit' entries.
To edit, click the 'Edit' icon, make necessary changes, and save. Your list will update accordingly.
Step 5. Search and Export:
Utilise the 'Find' button to search your drawings list based on various criteria like date or amount.
Export your data in preferred formats for record-keeping or analysis.
Tips for Efficiency and Accuracy:
Record takings and expenses promptly to minimise forgetting transactions or details later.
Clearly describe each transaction for easy identification during reconciliations and reporting.
Regularly reconcile your bank and cash accounts to catch discrepancies.
Summary
Transitioning to a separate business bank account offers clearer financial management for sole traders. By following these steps, you can efficiently manage your earnings, ensuring a smooth flow between your business and personal finances. Should there be any questions, or you wish to explore more features, the Joy Pilot team is here to assist, empowering you to focus on growing your business with confidence.
Need help on other topics? Here are some useful guides:
Understanding Cash and Bank Reconciliations