Owner Money In and Owner Money Out

Use Owner money in/out when money moves between the owner personally and the business.

Owner money in

Owner money in is personal money the owner puts into the business. For example, if the owner deposits $2,000 of personal funds into the business checking account, record $2,000 as Owner money in and choose the account where it was deposited.

Owner money in is generally not business income. Recording it with the Owner money workflow keeps it separate from amounts earned from customers or other business activity.

Owner money out

Owner money out is business money the owner takes for personal use or distribution. For example, if the owner transfers $500 from business checking for personal use, record $500 as Owner money out and choose the account it was paid from.

Owner money out is generally not a business expense. It should not reduce the profit shown on the Income Statement as though the business bought something.

To record either event, open Add transaction, choose Owner money in/out, and then choose I put money into the business or I took money out of the business.

The tax treatment of money paid to or from an owner can depend on the business's legal and tax structure and the circumstances. Consult a tax professional when that treatment is uncertain; the purpose of this workflow is to keep owner activity separate in the books.