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:
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.
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?
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.
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.