#BookkeepingTip: Recording Payments to Yourself

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Yesterday I shared how easy it is to pay yourself if you're a sole proprietor or LLC...by simply transferring money to your personal account.

But what about in your books? How do you mark this? Is it an expense?

Nope! If you're moving money to your personal account it is NOT considered an expense.

I won't go into all the details about what it actually is, but you need to mark this as an Owner Draw. When you're looking for this account it won't be under expenses; it will be under equity.

Easy peasy 😊