Hello @pearls,
To properly categorize a transfer from a business account to a personal savings account in QuickBooks, you should record it as an "Owner's Draw" (for sole proprietors) or "Shareholder Distribution" (for corporations). This ensures that the transaction is recognized as a withdrawal of funds for personal use, not a business expense.
Here’s how you can do this in QuickBooks:
1. Go to the Banking menu (or Transactions -> Banking in QuickBooks Online).
2. Find the transfer transaction in your bank feed or manually locate it in your records.
3. Edit the category for the transaction:
- Select Owner’s Draw if you are a sole proprietor or Shareholder Distribution for corporations.
- If these categories are unavailable, you can create them by going to Settings -> Chart of Accounts -> New, selecting the appropriate account type (equity), and naming it accordingly.
4. Save your changes.
Hope this helps
