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garden-faux
December 30, 2022
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How do I make a cash withdrawal that won't show as an expense?

  • December 30, 2022
  • 1 reply
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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?

Best answer by BigRedConsulting

Don't use an expense account.

 

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

1 reply

BigRedConsulting
BigRedConsultingAnswer
December 30, 2022

Don't use an expense account.

 

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

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