How do I show cash from client that I pocket rather than deposit?

Jan 02, 2007 4 Replies

I am a sole proprieter with no employees. I normally show any money I transfer out of my business bank account to my personal account as Equity under a sub-account called Owners Draw. Not even sure if that the right way but thats how I do it. ANyway I received a check from client made out to cash recently. Usually I just deposit checks like that into my company account just like any other check. I don't cash client checks normally even if they are made to cash. I realized I was short cash so figured I'd just cash it since it was only a $60 check. Now I am not sure how to identify it in Quickbooks. I can't show it as a deposit because I never deposited it. How do I show it as income for the company. I thought Petty Cash but I'm not sure since I can't show where the petty cash was used for. The money really was Owners Draw for my personal use. How to handle it. And should I be categorizing Owners Draw under Equity anyway?

Thanks in advance, Adam

I am a sole proprieter with no employees. I normally show any money I transfer out of my business bank account to my personal bank account as Equity under a sub-account called Owners Draw. Basically my salary I guess you can say. Not even sure if thats the right way to show it in Quickbooks but thats how I do it. Anyway I received a check from client made out to cash recently. Usually I just deposit checks like that into my company account just like any other check. I don't cash client checks normally even if they are made to cash. I realized I was short cash so figured I'd just cash it since it was only a $60 check. Now I am not sure how to identify it in Quickbooks. I can't show it as a deposit because I never deposited it. How do I show it as income for the company. I thought Petty Cash but I'm not sure since I can't show what the petty cash was used for. The money really was Owners Draw for my personal use. How do I handle it?. And should I be categorizing Owners Draw under Equity anyway?



Thanks in advance, Adam



Do a deposit, at the bottom of the screen it shows cash back box make it the amount you took, credit it to owners draw.

And Owners Draw IS an equity account so you are properly classifying the cash you take out of the company.

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