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garden-faux
Dec 30, 2022 3:45 PM UTC
Solved

How do I make a cash withdrawal that won't show as an expense?

The owner of the company wants to withdrawal x amount of cash but we don't want it to affect the income statement.  How can I record this transaction without it showing as an expense?

BigRedConsulting
BigRedConsultingAnswer
Dec 30, 2022 6:29 PM UTC

Don't use an expense account.

 

Instead, use an Equity account, as the owner is removing equity from the company.

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1 reply

BigRedConsulting
BigRedConsultingAnswer
Dec 30, 2022 6:29 PM UTC

Don't use an expense account.

 

Instead, use an Equity account, as the owner is removing equity from the company.

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