Owner's Draws: Categorize or Transfer?

BrandonS-CPA_Padgett · ‎August 12, 2022

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.

JessT · ‎August 12, 2022

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!

View solution in original post

JessT · ‎August 12, 2022

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 · ‎August 12, 2022

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

JonpriL · ‎August 12, 2022

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 · ‎August 17, 2022

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

Shivaraj · ‎September 06, 2024

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

bmdh27 · ‎September 10, 2024

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 · ‎September 10, 2024

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

Topics

Training

Community

Resources

Owner's Draws: Categorize or Transfer?