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) are considered cash disbursements.

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’.

Follow by Email
LinkedIn
Share