A sole proprietor doesn’t receive a salary like an employee but uses the business income as private withdrawals for personal use.
What are private withdrawals?
When you have a sole proprietorship, you and your business are considered the same person by the tax authorities and accounting standards. This means you cannot pay yourself a salary in the same way an employee is paid. Instead, you withdraw money from your business account for personal use, known as a private withdrawal.
A private withdrawal simply means that Truster transfers money from the client funds account to your personal bank account. This gives you access to the money, but it is not recorded as an expense in your business accounting and does not affect your company’s profit (i.e., it does not appear on the income statement).
Where can I find the payment details for private withdrawals? 🔎
Open the app, select "Company Information" from the menu, and go to "Reports to Download." From the list of reports, select "Withdrawal Report" and specify the time period for which you want to view private withdrawals.
A sole proprietor doesn’t have a payslip – use an income statement for official matters 📄
A sole proprietor does not receive a payslip in the same way as an employee, nor is their income reported to the Incomes Register. Instead, the sole proprietor’s income is reported once a year to OmaVero through an annual tax return.
If an authority or funder requests proof of income, you cannot provide a payslip, as you don't have one. In that case, you must provide an income statement, a summary of your business’s income and expenses.
Use either:
- An income statement for the current year (i.e., income accumulated so far), or
- An income statement prepared at the beginning of the year for the previous full calendar year.
All your payment details can be found in the Truster app 📲
You can see the daily payments under Menu > Company's transactions.
You can find more detailed and comprehensive reports by selecting Menu > Company Information > Reports.
Read more about sole proprietors’ reports here!