As a Sole Proprietor, you simply transfer money from your business bank account to your personal bank account.
Those transactions are categorized as Owner's distributions in your Heard books. You can choose the pay frequency and the amounts. You do not need to set up a payroll service.
How much to pay yourself
Heard’s general recommendation is to allocate 50% of your net income, which is Revenue - Expense, to owner distributions. We also recommend saving 30% for taxes and keeping the remaining 20% as a reserve for rainy-day expenses.
We recommend using your Allocation Guides to determine these amounts since you'll want to ensure you're operating within your business's net profit. Your monthly allocation guide helps calculate how much money you should set aside to stay on track with your saving goals. To learn more about Allocation Guides, please see: What are Allocation Guides?
If you're not sure what percentage of your earnings to set aside for your owner's distribution, reach out to the Heard Team via Messages, and we'll help you determine what's best based on your business's net profit.