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Mits1's avatar
Mits1
User
2 years ago
Solved

What account do I put when transferring some money from business account into personal account?

Hi, I'm new to using any accounting software so this is a basic question.

I am a sole trader and put all of my received payments into business account but would like to transfer some into my personal account for my personal use.

Is it correct that I choose "Owner's drawings" under Equity account for account keeping?

 

Also, I need to put some money into my business account so that I can pay expenses. If I transfer money from my personal account into business account, is it "Owner's funds introduced" under Equity account as well?

  • Tracey_H's avatar
    Tracey_H
    2 years ago

    Hi Mits1 

     

    Thanks for your post. Generally speaking, Owner's drawings is used for funds transferred out of the business for personal use and Owner's funds introduced is for personal funds paid into the business account. However, it is best to speak to your accountant to ensure these accounts are applicable for your business set up.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    2 years ago

    Hi Mits1 

     

    Thanks for your post. Generally speaking, Owner's drawings is used for funds transferred out of the business for personal use and Owner's funds introduced is for personal funds paid into the business account. However, it is best to speak to your accountant to ensure these accounts are applicable for your business set up.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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