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