what account to put Draws in?


Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
oops, I forgot to explain. I work for an LLC where the owner uses some money from the corporate banking account. This is supposed to be a "draw," right? What account does it com from? QB Help says an equity account.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Owners draws are a reduction of equity. Kind of like a contra account.
Generally:
Equity Retained Earnings Owner's Draw
There may be other equity accounts.
--
Paul A. Thomas, CPA
Athens, Georgia
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Thanks, Paul. I had it listed in Quickbooks as an expense account. QB would not let me put it in Retained Earnings.
wrote

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

It's not a "Retained Earnings" account or subaccount.
It is an Equity type account though.
If you wanted to run it as an expense, show it as "Other Expense" and know that it's an add-back to net profit for tax purposes. That's probably more useful for you than showing it correctly as an equity account.
--
Paul A. Thomas, CPA
Athens, Georgia
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.