You take money out of your own business as a draw (not through payroll).
How should it be recorded in your books?
The transaction should be categorized as an owner’s draw or a similar name of accounts in the EQUITY section.
You may have an expense account for the draw, but drawing money out of the business is not an expense.
What if you accidentally use the business money for personal?
This should also be categorized as an owner’s draw.
For both cases, within your books, it is not a transfer to a personal account (we do not want to include personal accounts in your books), and it is not an expense.
