Cash Disbursements

Cash disbursements is the process of paying the bills for the small business. The most common format is to issue checks, but other methods include paying via direct debits to other accounts, paying by cash to vendors (get a signed receipt), issuing refunds to customers and electronic transfers (taxes).

Owner’s Draw in Business

Owner's Draw

When an owner of a small business operation transfers money from the business bank account to their personal bank account the transaction is commonly referred to as a ‘Draw’. There are other terms but this is the traditional word used.  The technical definition is: ‘A transfer of earnings from the business on behalf of the owner is referred to as a draw’.

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