Setting up business - owners equity and draws

I am attempting to switch over from Quickbooks to YNAB for my business finances. I think I have the hang of things - except owners equity and draws. Having those accounts throw off my "P & L" report (Income . & Expense). How do you all handle those two accounts? 

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    • nolesrule
    • Stealing From the Future fix is an improvement but is incomplete....
    • nolesrule
    • 2 yrs ago
    • Reported - view

    You can remove (hide) any categories you want from the Income & Expense report using the filters.

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    • nolesrule
    • Stealing From the Future fix is an improvement but is incomplete....
    • nolesrule
    • 2 yrs ago
    • Reported - view

    If you have inventory, track miles, or have a depreciating asset schedule (like for the computer you're currently running QB on and the business-owned desk the computer sits on), you can't manage those in YNAB.

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  • Owners equity and draws are balance sheet items so they would be accounts. 

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      • nolesrule
      • Stealing From the Future fix is an improvement but is incomplete....
      • nolesrule
      • 2 yrs ago
      • 2
      • Reported - view

      MXMOM  makes a good point. In the context of YNAB, there is no way to do a proper balance sheet. You can track owner contribution and owner draws (and they must be budgeted for), but that's the extent of it.

      Contributions would inflow to an Owner's contribution category, then the money would be unbudgeted and distributed to other categories. Money the owner wants to pull from the business would be budgeted to the Owner's Draw category with the actual draw being an outflow transaction categorized to that category.

      I haven't dropped Quickbooks. YNAB doesn't do enough to warrant it. However I buy the desktop software and only upgrade every 4-5 years if necessary.

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  • Thank you. I believe I understand. Just wasn't used to see owners draws impact my P&L. 

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  • 2 yrs agoLast active
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