Owner Draw Confusion?
Paying yourself from the business? It’s called an owner’s draw—and it’s easy to track. Many business owners transfer money to their personal account and just call it “income.” But if you’re not set up as a corporation with payroll, this is actually an owner’s draw. Misclassifying it can mess up tax planning and confuse your QuickBooks reports.
When you track it properly, you’ll have clearer books and a more accurate tax picture. In QuickBooks, record it as an owner’s draw (equity account), not an expense. A Chandler CPA (like us) can show you how to track personal withdrawals correctly and plan for taxes so you’re not caught off guard.
Questions? Call us at 480 747 3935 or visit our Monthly Accounting Services page, too!
