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# Transfers, credit-card payments, and owner draws

Three everyday transactions get miscategorized more than anything else. All three have the same tell: no money actually left or entered your business.

${youtube}[Watch: How to record transfers, credit card payments and owner draws in BooksGPT](-CDjUF0bdRI)

## Moving money between your own accounts

Checking to savings, checking to a second business account, an owner moving cash between the two.

- This is a **transfer**, not income and not an expense.
- When both rows are in BooksGPT, match them as a pair. The category picker shows the other row under **Recommended** as **Transfer to/from <account>**.
- When only one row exists, open **Transfers** in the category picker and choose **Transfer from <account>** for a deposit or **Transfer to <account>** for a withdrawal. The note under that heading says **Use when only this side is in BooksGPT**. If an account under **Transfers** is marked **Matches**, the other side is already here, and choosing it matches the two rows.

Both workflows move cash between balance-sheet accounts. Neither records income or an expense, so neither changes the profit and loss report.

Until the two legs are paired, each unreviewed side posts on its own.

|| One lands in Uncategorized Income and the other in Uncategorized Expense. That double-counts until BooksGPT pairs them.

QuickBooks does the same. Pair them, and both leave Uncategorized.

![The category picker showing a Recommended transfer to Chase Checking](https://booksgpt.ai/help/transfers/recommended.png)

| Got a pairing wrong? [Open the transaction](https://app.booksgpt.ai/go/transactions) and click **Un-match transfer**. Both rows go back to **To review**, and they sit under Uncategorized until you file them again.

![The matched-as-a-transfer panel with the Un-match transfer button](https://booksgpt.ai/help/transfers/unmatch.png)

## Paying your credit card

The payment from checking to your card is also a **transfer**. If both payment rows exist, pick the match under **Recommended**. If only the checking row exists, choose **Transfer to <credit-card account>** under **Transfers**.

- The expense was already recorded when each charge arrived on the card.

||| Categorizing the payment as an expense counts the same spending twice, and it is the single most common reason a P&L looks too high.

## Taking money out for yourself

Money you take out of the business for personal use is a **draw**, not an expense.

- Categorize it to **Owner's Draw**, under the **Equity** group in the category picker.
- It never touches your profit and loss, because a draw is not a business cost.

![The Equity group in the category picker, with Owner's Contribution and Owner's Draw](https://booksgpt.ai/help/transfers/equity.png)

Money you put in is the mirror image:

- Categorize it to **Owner's Contribution**, also under **Equity**.
- Not income. You did not earn it.

Paying yourself a real salary through payroll is different. That one is an expense.

## The quick test

Ask whether the business is better or worse off.

- Cash moved between your own pockets? Transfer.
- Money left the business for you personally? Draw.
- Borrowed money arrived? Liability. See "How to record a loan".
- You actually earned it, or actually spent it? Income or expense.

BooksGPT warns you when this looks wrong. Categorize money going out as income and the picker tells you so before you save it.