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Drawings (paying yourself from your business)
Drawings (paying yourself from your business)

How to handle drawings in Solo

Brent Wilson avatar
Written by Brent Wilson
Updated over a week ago

You might have noticed that there is no category for drawings in Solo, this article explains why that is and what to do when you pay yourself from your sole trader business.

Firstly, drawings are not an expense or tax deductible, since they are considered personal use of your business funds.

Also drawings relate to companies, rather than sole traders. When you have a registered company there a two legal entities, you and the company, and you need to keep track of when you draw money out of the company for your personal use.

However, when you're a sole trader you and the business are effectively the same legal entity. So when you move money out of your business account and into a personal account, you are simply transferring money from one of your accounts to another of your accounts. Therefore the transaction is just a transfer, it doesn't need to be tracked and should be left as 'uncateogised' in Solo.

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