bluejay

log an owner draw (paying yourself)

when you transfer money from the business account to your personal account, that's an owner draw — not an expense. tagging it correctly keeps your p&l clean.

3 steps~2 min
  1. 1

    log the payment as usual

    amount, method, date.

  2. 2

    set category to owner draw

    the payee can be your own name. that's fine — owner draw doesn't need a vendor.

  3. 3

    watch sycamore

    owner draws don't show up as expenses on your p&l (they're not an expense — they're an equity reduction). they show up on the equity / owner-draw account.

    tip

    for an llc taxed as a sole prop, owner draws are how you pay yourself — there's no "salary." for an s-corp, you're supposed to take a reasonable salary first (via pecan) and the rest as an owner draw. ask your cpa where the line is.

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