I can share some information about how to handle business expenses in QuickBooks Online.

 

Yes, you are correct. Any withdrawals from your business income account are considered as an expense.

 

To give you a better view of handling this kind of situations, I’m including some great articles that you can read:

Resolution for 'business income account issue: 'I have set up Equity…owner’s draw…I did a withdraw from my income account to pay myself and labeled it as owner’s draw. That withdraw is showing as an expense? is that correct?' available: Yes.

The business income account issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the business income account issue yourself by looking for a resolution described in the article. If it is a complex business income account issue or you are unable to solve the issue, you may contact us by clicking here or by using other business income account support options.

For more information about resolving issues related to business income account in Quickbooks/QBO or to get support for the issue 'I have set up Equity…owner’s draw…I did a withdraw from my income account to pay myself and labeled it as owner’s draw. That withdraw is showing as an expense? is that correct?', click the link below: