Partner profit-sharing, draws, contributions and the Distributions report
Set each partner's share, record what they take out and put in, and see what each one is still owed from the period's profit.
If a business is owned by partners who split the profit, Todah keeps track of who is entitled to what. You set each partner's share and record the money each one takes out (a draw) or puts in (a contribution). The Distributions report then shows each partner's share of the profit and how much of it they have already had.
Before you start
- This is part of Enterprise. On other plans the Partners & Finance card and the Owners reports are hidden.
- Only an owner or admin can save the finance settings or delete a partner or an entry. Any team member can add and edit partners and record draws, reimbursements and contributions.
Step by step
- In the menu on the left, choose Settings, then the Books & Tax tab.
- Scroll to the Partners & Finance card.
- Under New Partner, type the partner's name, put their share in Share %, and choose Add Partner. Repeat for each partner.
- In Reserve Held Back, type any amount the business keeps back before sharing out profit, and choose Save Finance Settings.
- When a partner takes money out or puts money in, go to Draws, Reimbursements & Contributions: choose the Partner, the Date, the Type and the Amount, then choose Record.
- To see the result, go to Reports → Owners → Distributions and pick the period.
What each box means
| Reserve Held Back | An amount taken off the profit before it is shared, for example to keep a cushion in the bank. It is one fixed amount, taken off whatever period you report on. |
|---|---|
| New Partner / Share % | The partner's name and their percentage of the profit. Check that the shares add up to 100. |
| Partner | Who the money went to, or came from. |
| Date | When it was paid. The Distributions report counts it in the period that contains this date. |
| Type: Draw | Money a partner took out as their share of the profit. |
| Type: Reimbursement | Money paid to a partner to cover business costs they paid personally, such as a home office. Reimbursements come off the profit before it is shared. |
| Type: Contribution | Money a partner put into the business. It appears on the Balance Sheet as Owner's Contributions; it does not change the profit to share. |
| Amount | How much. |
Reading the Distributions report
The line at the top shows the sum: net profit for the period, minus the reserve, minus all reimbursements in the period, equals the distributable amount (the profit available to share).
| Partner and % | Each partner and their share. |
|---|---|
| Entitlement | Their share of the distributable amount. |
| Withdrawn | The draws recorded for them in the period. |
| Reimbursed | The reimbursements recorded for them in the period. |
| Received | Withdrawn minus Reimbursed: the part of what they took out that counts as profit. |
| Still Owed | Entitlement minus Received. A minus figure means they have taken more than their share. |
Changing your mind
- Edit beside a partner loads their name and share into the boxes and the button changes to Save Changes. Change them and choose Save Changes, or choose Cancel to go back to Add Partner.
- The bin icon beside a draw, reimbursement or contribution deletes it, after you confirm. To correct one, delete it and record it again. Owners and admins only: members do not see the bin, and the deletion is recorded in the Audit Log.
- The bin icon beside a partner (owners and admins) removes them, after you confirm, when nothing has been recorded for them. A partner with draws, reimbursements or contributions stays, so the history behind your Balance Sheet stays complete; the message says how many entries they have. Delete those entries first only if they were mistakes.
Good to know: Draws and reimbursements appear on the Balance Sheet as Owner's Drawings, and contributions as Owner's Contributions.
Be careful: Record each draw or contribution in one place only: here, or by categorising its bank line as Owner draw or Owner contribution on the Banking screen. Recording it in both counts it twice on the Balance Sheet. Only draws recorded here appear in the Distributions report.
See also
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