How do I handle "Owners Draws" or contributions?

If you are asking this question, the odds are pretty good that you have some experience with double entry accounting. "Owner Draw" is a term used to describe the withdrawal of funds from a business by a business owner. Usually, it is reflected as a withdrawal from a bank account, and categorized as a corersponding reduction in the owner's equity account.

However, Seller Ledger was (at least initially) designed to work for businesses who file a Schedule C. The reason this distinction is important is that Schedule C filers report business income (or loss) as part of their personal tax return. And that tax form does not require the reporting of "balance sheet" account balances, like assets, liabilities, and owners equity.

Within Seller Ledger, you only need to categories those payments to yourself as "Not for Business." That tells us that the withdrawal is not a deductible expense, but for personal use.

Note: you may be interested to know that Seller Ledger actually does use double-entry accounting behind the scenes, and selecting the "Not for Business" category is actually treated as a change in an owners equity account behind the scenes. We just prefer to keep the software as simple to use as possible.