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10h • Communities
💡 Paying Yourself Is NOT a Business Deduction
Quick reminder for entrepreneurs who are just starting out:
If you withdraw money from your business account…That is not a business expense.
It’s not “Officer Pay.”
It’s not “Payroll.”
It’s not a deduction.
It’s an Owner Draw (Equity).
I recently had a new client writing checks to herself and categorizing them as an expense called “Officer Pay.”
We had to go back and fix those entries to Owner Draws and remove them from the Profit and Loss.
Why does this matter?
Because misclassifying it:
- Overstates expenses
- Distorts your Profit & Loss
- Creates confusion at tax time
Paying yourself doesn’t reduce your profit.
It's simply transferring money from the business to you.
Clarity in your books = confidence in your decisions.
Want more practical bookkeeping knowledge?
Let’s keep Doing Business Right!
DBR
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💡 Paying Yourself Is NOT a Business Deduction
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