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BrandonS-CPA_Padgett
Level 2

Owner's Draws: Categorize or Transfer?

When you record an Owner's Draw from a bank feed, are you supposed to record a Categorize or Transfer?  I want to make sure I am doing it correctly.  I have included a screen snip below, showing how QuickBooks is suggesting Transfer, but I thought it should be Categorize.  Thank you for any help.Screenshot 2022-08-12 113820.png

Solved
Best answer August 12, 2022

Best Answers
JessT
Moderator

Owner's Draws: Categorize or Transfer?

Hi BrandonS-CPA_Padgett!

 

It's great to see you posting today! I'm happy to provide details about recording an owner's draw from a downloaded transaction.

 

QuickBooks will randomly suggest a method to record a downloaded transaction. You are right about categorizing the downloaded draw instead of recording it as a Transfer. To do this, you'll want to click on it and choose the right category.

 

Another way of recording a draw is to manually create a check. Here's an article for more details: Set up and pay an owner's draw.

 

I'm just a comment away should you need more help with your transaction. Take care and happy weekend!

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7 Comments 7
JessT
Moderator

Owner's Draws: Categorize or Transfer?

Hi BrandonS-CPA_Padgett!

 

It's great to see you posting today! I'm happy to provide details about recording an owner's draw from a downloaded transaction.

 

QuickBooks will randomly suggest a method to record a downloaded transaction. You are right about categorizing the downloaded draw instead of recording it as a Transfer. To do this, you'll want to click on it and choose the right category.

 

Another way of recording a draw is to manually create a check. Here's an article for more details: Set up and pay an owner's draw.

 

I'm just a comment away should you need more help with your transaction. Take care and happy weekend!

BrandonS-CPA_Padgett
Level 2

Owner's Draws: Categorize or Transfer?

Thank you so much for your quick response.  I thought this was correct based on the training, but I wanted to be safe.

JonpriL
Moderator

Owner's Draws: Categorize or Transfer?

Appreciate the update, @BrandonS-CPA_Padgett .

 

I'm happy my colleague was able to resolve your concern about reviewing an owner draw from your list of downloaded bank transactions.

 

As always, let us know in the comments below or by starting a new thread discussion if you have any other questions. Stay safe and have a good one!

Jonnybegood
Level 2

Owner's Draws: Categorize or Transfer?

I have the same issue and question.  But what is the correct catagory?

Shivaraj
Level 1

Owner's Draws: Categorize or Transfer?

For a sole prop you would categorize as "Owners Draw" or "Owners Equity" 

bmdh27
Level 1

Owner's Draws: Categorize or Transfer?

What if I transfer the Owner's Draw into another bank account for the same business? How do I manage that? In practice, the money I withdraw from my business checking account (my owner's draw) is transferred to my personal checking account with the same bank. 

Shivaraj
Level 1

Owner's Draws: Categorize or Transfer?

Usually, your personal account is not connected to your Quickbooks account So you don’t have to reconcile your personal account as part of your business Bookkeeping. So even though you are transferring money from your business account to your personal, I still record it as an expense to an equity account like owners draw. You have to set up a supplier using the owners name to complete the task. 

https://youtu.be/wlw877gQ0UI?si=-a4KmXPXlA5JlsEH

Business owners often use the company's bank and credit card accounts to pay personal bills and expenses, or simply withdraw money to pay themselves. Let's go over what to do when the business owner pays for personal expenses with a company account and how to pay the owner with a draw. Plus we'll
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