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MMTGC
Level 1

Hi, just a question. If i transfer money from my business banking account to my everyday transaction account, is this a owner's drawing or a transfer?

 
6 Comments 6
Little Owl
Level 1

Hi, just a question. If i transfer money from my business banking account to my everyday transaction account, is this a owner's drawing or a transfer?

Hi,

 

If the everyday savings account is your personal bank account then I would put it to drawings :)

Charies_M
Moderator

Hi, just a question. If i transfer money from my business banking account to my everyday transaction account, is this a owner's drawing or a transfer?

Nice question, MMTGC.

 

I agree with Little Owl, if the money is taken from the business banking account for personal use, you can consider it as owner's drawing.

 

There are many ways to account for owner's equity depending on how your business is set up (sole trader, company, partnership, trust). That said, I recommend consulting with a certified accountant or bookkeeper to make sure transactions are recording the funds correctly.

 

However, if you're just moving funds from one account to another, you can use the Transfer option. Below are the steps on how to do it:

 

  1. Go to +New icon.
  2. Choose Transfer.
    QBO AU transfer.PNG
  3. Enter the necessary information.
  4. Click Save and close.
    QBO AU transfer.PNG 2.PNG

Here's an article to become more familiar with recording transfers between bank accounts: Transfer funds between bank accounts.

 

You can always reach back to me for additional questions. It will be my pleasure to help. Wish you all the best.

Planet Cocoa
Level 1

Hi, just a question. If i transfer money from my business banking account to my everyday transaction account, is this a owner's drawing or a transfer?

Hi, 

I have a question about this. Since I have transferred money between my bank accounts (from a business transaction/receiving account to a savings, or from savings to transaction to make a purchase) it has assigned it as an expense. What would I "Assign" internal transfers? 

Thanks

Ken - Product Champion
Content Creator

Hi, just a question. If i transfer money from my business banking account to my everyday transaction account, is this a owner's drawing or a transfer?

Hello Planet Cocoa,

 

If you are making a transfer between accounts that are internal to the business, then an expense is not necessary. The methods outlined above are for when you move funds from a business account to a personal account.

 

Instead, one would use a Transfer type transaction. This can be created by either using the '+ New' icon, or using the Record as Transfer option in Banking.

 

If you have already recorded the transaction as an expense, it may be an idea to remove it, and record it as a Transfer.

 

-Ken

accounts-hunterl
Level 1

Hi, just a question. If i transfer money from my business banking account to my everyday transaction account, is this a owner's drawing or a transfer?

How do you do a new owners drawing on Quickbooks?

 

Cheers

Nona_O
QuickBooks Team

Hi, just a question. If i transfer money from my business banking account to my everyday transaction account, is this a owner's drawing or a transfer?

Hi accounts-hunterl,


Welcome to Quickbooks Community.
Recording an owner’s drawing depends on what situation you are in, however, it is still categorise as an Expense.  
It would be best if you reach out to your accountant on how it would be best recorded based on the situation.

 

Thanks for stopping by.