Entering an owner's draw Follow

An owner's draw occurs when a sole proprietor withdraws cash or assets from his or her business. It's different than a personnel entry in your forecast; an owner's draw isn't calculated into your company's operating expenses the way a regular salary is.

Keep in mind that the owner's draw isn't the only option to represent paying yourself. To have your salary calculated as part of your overhead expenses and into your net profit, you can  create a Personnel entry for yourself instead.

 

To represent an owner's draw, use a Dividend entry in your forecast, which will allow you to place specific draw amounts in specific months. This entry will appear in the Cash Flow statement as Dividends and Distributions:

dividends-cashflow.png

Your owner's draw amounts will also be deducted from the Retained Earnings line in your Balance sheet.

 

 

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