A Takings payment is the process of transferring money from a business bank account to a personal bank account, typically done by sole traders to withdraw their earnings from the business.
For sole traders, especially those transitioning from using a personal account for both business and personal transactions to a separate business account, managing Takings payments is a significant step. Here’s how you can smoothly add, edit, and delete takings payments using Joy Pilot's intuitive platform.
Introduction
Initially, if you're operating without a separate business bank account, your personal account serves both purposes. There are no distinct Takings payments as all transactions are mingled. However, setting up a business bank account changes this, prompting the need to manage Takings payments - the process of transferring money from your business account to your personal account.
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.
Setting Up Takings Payments
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.
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.
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.
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.
Search and Export:
Utilize 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.
Conclusion
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.