Skip to main content
Mar 9, 2022 6:16 PM UTC
Question

Categorizing Disbursements

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
Mar 16, 2022 1:39 PM UTC

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.