Cash payments

Forum|Forum|5 years ago
September 14, 2020
1 reply
17 views

Can I deposit a cash payment directly into Owner's Draw? I don't see that listed as an option in the "Receive Payment" window in the drop down box for "Deposit to". I don't think I want to create another Owner's Draw account. In fact, I don't think I can.

What would be the best way to account for a cash payment that was directly pocketed for personal use?

QuickBooks Online

Best answer by Rustler

You have to account for the money in the business accounting books, so deposit the funds to the cash type bank account.

then write a check on the cash type account to yourself and use owner equity drawing as the expense (reason) for the check. (a check is just a data entry form)

RustlerAnswer

Level 15

You have to account for the money in the business accounting books, so deposit the funds to the cash type bank account.

then write a check on the cash type account to yourself and use owner equity drawing as the expense (reason) for the check. (a check is just a data entry form)

Catydid22

I have QB Desktop. When I made the deposit to the cash account, I used the "Cash back goes to" and the owner's cash withdrawal account. It seems to have accounted correctly. Is this method acceptable? Thank you.

Tori B

QuickBooks Team

Hi there, @Catydid22.

Thanks for taking the time to follow along with the thread and sharing your concerns.

I recommend contacting your certified accountant. This way, they can review your account and let you know if this method works the right way for you and your business. If you don't have an accountant, don't sweat. You can find one here in our Resource Center.

Please don't hesitate to let me know if you have any questions or concerns. Take care!

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