USA Should you accrue for Owners Draw like Wages?

[marino]

I was wondering if you need to accrue for Owners Draw like Wages or should that be on the cash basis?

Thanks for the help.

 

[kirby]

No accrual. To “draw” requires an action. So account for this when payment is drawn.

 

[marino]

Ok thanks so draws should be on the cash basis?

 

[kirby]

Yup. No draw to be accounted for until there is a draw.

 

[marino]

great thanks!