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Dave CPA
Dave CPA, Accountant
Category: Finance
Satisfied Customers: 840
Experience:  I'm a CPA with over 10 years of experience
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As owner of the business everytime I take money I charge it

Resolved Question:

As owner of the business everytime I take money I charge it to owners draw..so that doesn't show up in profit and loss? therefore the profit is my income on my 1040?they are virtually the same item?
Submitted: 3 years ago.
Category: Finance
Expert:  Dave CPA replied 3 years ago.
Hello,

Welcome to Just Answer,

Charging disbursements to owners draw doesn't impact the profit and loss. The profit and loss is what shows your income to the IRS and the owners draw is a balance sheet/equity account.

The 1040 and the profit and loss should be virtually the same and not impacted by owners draw.

Please let me know if you have any questions before you rate my answer. A positive rating is what I strive for. Regards Dave
Dave CPA, Accountant
Category: Finance
Satisfied Customers: 840
Experience: I'm a CPA with over 10 years of experience
Dave CPA and other Finance Specialists are ready to help you
Customer: replied 3 years ago.

So then is the profit rolled over to owners equity?


 

Expert:  Dave CPA replied 3 years ago.
Yes the profit is rolled over into owners equity at the end of the fiscal year. Please let me know if you need anything else before you rate my answer. Dave