Wife of Business Owner Helping With Chart of Accounts

Business Owner Help

Business Owner Help

Thank you for the basic bookkeeping 101 info. You touched on a topic that I have a question on--


Sole proprietorship owner's drawing account. Should the "personal expenses" i.e. groceries and other household items be "lumped" in the Owner's Draw?

Right now they are basically showing as "undesignated" expenses because I didn't know what to do with them.

Leigh

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May 25, 2018
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Personal Expenses on Balance Sheet
by: Stephanie

Thank you for your inquiry about how personal expenses and other household items she be accounted for under Owners Draw.

You can use subcategories under Owner's draw to give you more detail into how you are spending your money. This can also be useful for keeping track of additional possible tax write offs, such as medical expenses, and office in home deductions for rent and utilities.

This is a personal preference really. You can lump all under Owners Draw or use subcatories for more specific reporting.

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