USA Should you accrue for Owners Draw like Wages?


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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.
 
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kirby

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

kirby

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