Owner salaries vs expenses!
I run my own business. So my question is how do i record my own salary or income in Wave in the best way?
Before i started using Wave i always did a monthly end. If i did earn money during the month i recorded this as my salary. If the company for some reason did not make any money, minus in the account. I added the money back to make the account zero. The company owed me money. Money that i would take out again at a later stage when we had profit again.
Now in Wave i have done yearly ends instead, journal transactions. Since i do not find this function here in wave. But i also see a few problems with this issue, let me explain one time.
a. Lets say i earn 1 miljon in the month of July! I have 300K in expenses during the month. So my net profit would be 700K. If i take this profit out in the end of the month, where should i record it? As a salary or something else?
b. Same as above, i earn 1 miljon in the month of July! I have 300K in expenses during the month. So my net profit would be 700K. If i take out 200K first week of the month, 300K the last week of the month! Where do i record these two transactions? Under salaries or something else? The remaining 200K would need to be recorded as well somewhere?
What i am getting at is that i first take money out each month i record as a salary, an expense. That would drag down my profit margin. Then i take the rest out in the end of the month. Depending on where i record this i will drag my profit margin down again.
Owner's Equity! Is this where i should put all the money i take out of the company? Even if it is in the middle of the month, or if it is in the end of the month?
If somebody out there have a nice solution to this problem. Please help me out one time! I would gladly take any information regarding this issue. This so my own accounting would be reflected correctly and made easier in the future.