Forum Discussion

givenslawns's avatar
givenslawns
Member
1 year ago

Owner Drawings

Hello, I've started taking out money of my business account and want to know what sort of account it should be allocated to? I would have thought it's an expense but apparently not. Could someone explain this please?

1 Reply

  • Shella_A's avatar
    Shella_A
    MYOB Moderator
    1 year ago

    Hi there givenslawns,

     

    If you're taking money out of your business account, it should be allocated to an "Owner's Drawings" account, not an expense account. This is because drawings are considered a reduction of the owner's equity in the business, not a business expense. I recommend speaking to your accountant for more detailed advice.

     

     

    Regards,

    Shella

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