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?
Forum Discussion
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
