I have a sole proprietorship. When I make personal purchases using my business bank accounts or credit card, I categorize them using the "Personal Expenses" category (I did not create this category, it came with QuickBooks by default). When I transfer money from my business accounts into a personal account, I categorize it as "Owner's Draw" (also came with QuickBooks by default). This approach seems to work fine for my purposes (neither Owner's Draw nor Personal Expenses appear in the profit and loss report, which is good), but I have seen some posts in this forum suggesting to mark all personal expenses and withdrawals as "Owner's Draw." Is there anything wrong with what I've been doing?
