Allow Equity Accounts to be Used for Expenses

Allow Equity Accounts to be Used for Expenses

Currently, when entering an Expense or Bill, the Expense Account (account to be debited) allows for accounts in any of these categories to be chosen:
  1. COGS
  2. Expense
  3. Other Current Liability
  4. Fixed Asset
  5. Other Current Asset
Noticeably missing are Equity Accounts.

Why is this? Why can't an equity account be debited in a transaction like this?

There are two very common use cases that necessitate this being available.
  1. Owner draws as part of payroll - In my case, there is one split transaction to a payroll provider that includes payroll expenses, debits to employee withholding accounts, benefit expenses, and owner draws. The latter is the only one not available.
  2. Expenses paid by the business that are really owner draws - A perfect example is the owner uses the company business card to make a personal purchase. Most accounting software just allows the expense to debit the Owner Draw equity account, but that's not possible with Zoho Books.
I can't think of a single good reason to not allow debits against Equity accounts from those types of transactions.

More broadly, Zoho Books seems to have artificial account restrictions like this that don't make a lot of sense.





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