In this presentation, we will take a look at the equity accounts that we have set up in our tracking of tax deductions within our business account which are not business related but could be deductible on the personal side and therefore things that we are going to track doing so with the equity draws accounts, we will now look at the option to make those accounts sub accounts of the draws account within QuickBooks. Here we are in the homepage, we currently have the open windows open in order to open the open windows, you go to the View drop down and select the open windows list. We are first going to take a look at our reports the report of the balance sheet by going to the reports drop down and go into the company and financial and scrolling down to that balance sheet standard. We're going to change the date up top by going to the Customize report so that we can have a range and we're going to change those dates from a 10119 to 1230 119 that being January through December 2019, the year that we are working on, I'm going to go ahead and go to the fonts and numbers tab and change the size of the numbers while we are here to 11 and say okay, yes.

And okay, we're focusing here on the equity accounts, you can see that now we have these equity accounts set up. These are items that we think are worth tracking, and therefore we want to put them into our business, pay them out of our business accounts so that we can select and make these account tracking categories for them. So that we can provide this information to our tax preparer, while still not distorting the income statement portion, basically recording them as draws but categorize draws, we do you can see want to be careful with how many items we have. We don't want too many categories or it will be a bit cumbersome to go through this information and and track all this information because It could be a lot, we could have a lot of accounts here. So we want to have a select amount of counts this, this would work well, for some items, we don't want to go overboard with it.

And now that we have these items in place, we could use another method to create these draws accounts as sub accounts. For example, making the draws account the master account, this being the draws, that are non categorized, and then making these other accounts be subordinate to that master account. Just another kind of look we can put into this possibly making it easier to visualize and see on the report. So to do that, we're going to go to the list of accounts by going to the lists drop down and go to the chart of accounts, the chart of accounts, under lists, Chart of Accounts being kind of like a list of accounts, but we'll go into here and then we're going to go into these items. Now we have all these these are all the equity accounts. They're going to be an order by account type.

So we're in order by equity accounts, we could change the order, but I'll just keep in order by account type, that's what I'm used to. And then we're going to go into here and to change it, I'm going to right click on it, and we will go to Edit account. And then what I want to do is make it a subcategory. So I'm going to check this part off, and then selected the subcategory. Oh, and we're going to make it a subcategory of the normal master draws account. So that draws account.

So this is going to be kind of this is going to be within the draws just a specific draw to categorize draw, we took it out for personal use to a specific category. gonna say Save and Close. Let's take a look at our balance sheet and see what happened so far. gone back to the balance sheet, change it please and we're going to go here, and now we have this subcategory that's been broken out under the draws, so it gives us this total owner's draw. So we get the total draw So this will look a little bit nicer once we break out all of them. So let's do that to the rest, the chaired charity, the child education, the medical costs and the medic medical insurance.

Back to the chart of accounts in our open windows. We're going to keep going through these now we got the charity, we're going to right click on it, we're going to edit the account. We are going to say subcategory and try I'm just going to type in this time draw and we want owner's draws. Next time we'll type in owner's draws if I remember so subcategory of owners draws and Save and Close. And then we'll just keep doing this. Here's another equity childcare.

Right click, going to say Edit that account subcategory. And this type I'll type in owner's draw. So subcategory owner draw, same thing, Save and Close. We're going to keep doing this again. Here's another equity account for education. Right click Edit.

And we're going to subcategorize it to once again, owner's draws. There it is and save and close, then we'll do this again. So here's our equity, medical cost, right click, and we're going to edit VAT account, we're going to change it to a subcategory making it owner's draws, same procedure, Save and Close. And then we could do it again, right click on the medical insurance, we're going to go to edit the account, sub account typing in owner's draws, and save and close. So now we've got all the drawers here, we have the normal draws, which is everything it's not categorized, and then all the other types of drugs which are categorized, and those are sub categories which we could see of course with the indentation Then if we go back to the balance sheet, let's see what happened in our open windows. Gonna refresh this report.

And within the owners drawers, we have the subcategories now. So now we could see the drawers. It's just one lump number. This is all money that we took out for personal use. It's all grouped together, we could see the total here for 6064. And then we could break it out by what we used it for.

On the personal side. We use this one for, of course, state charity, education and whatnot. And we could still provide this information to our tax preparer either with just this report on the balance sheet, but this could actually confuse some tax preparers, we might actually want to go into the report and print the date range of the report and it's probably better anyways because we can have the detail. Also note that we're really concentrating on this column here the activity and the total activity for the period. We'll explain more why in another presentation but That's gonna be the sub accounts. If we close this back out, then we've got all this information in a nice little sub category type format, which is a little bit longer, it actually adds a little bit more, but might be easier to see.

Also note that everything that we did not group into here and we put into the normal draws account, this is the master account. The draws account are here. So these are items that are just normal type of draws that we don't think are deductible for taxes but which we paid out of the business checking account and therefore do not belong as expenses on the income statement.