Cash not deposited

Shari

I'm often paid in cash, which I just spend and don't deposit. However, I still invoice and record the income so I can pay proper taxes on it. How do I record the payment? As Cash on Hand, Withdrawal, or ??

Mikeg

@Shari,
To record cash received that is not deposited in the business account but kept personally, you would mark the invoice as paid and use Owner Draw as the account. That is because the business did not receive the cash. An additional step would be required if the cash is spent on business expenses. That would be a journal entry Debit the expense and credit Owner Draw.