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sw1222
March 9, 2022
Question

Categorizing Disbursements

  • March 9, 2022
  • 1 reply
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The owner of the company wants funds from one account to be wired to his personal account as a disbursement.  How do I categorize that?

1 reply

paul72
paul72
March 16, 2022

Hi @sw1222 

 

Do you mean a disbursement (a payment made on behalf of a client to a third party for which reimbursement is subsequently sought from the client) or something else like a drawing or dividend?

 

A disbursement is simply an Expense (one that is reclaimable from a customer).

A drawing or dividend payment is usually from Owner's Equity.

 

Hope this helps.

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