Owner's Draw expenses

If we can't substantiate a charge, we have to record it as an owner's draw rather than a deductible business expense. Substantiate means there is a statement, receipt, or agreement showing what the charge was for.

That protects you in an audit, but it also means you do not get the deduction.

The good news: once you provide backup, we can review it and reclassify it if it belongs as a business expense.

What substantiation means

Substantiation is the support that shows:

• what was bought;
• when it was bought;
• who paid for it;
• which business it belongs to;
• why it was business-related.

For many transactions, the bank feed is enough to show that money moved. It may not be enough to show what the charge was for.

Common reasons this happens

A transaction may land in Owner's Draw when:

• it came from a personal-looking vendor;
• the receipt is missing;
• the business purpose is unclear;
• it was paid from a business account but looks personal;
• it belongs to another entity;
• it was a transfer to the owner;
• it was a reimbursement without support.

This is a protective default. It keeps Uplinq from claiming a deduction before the support is clear.

How to fix it

If the transaction was for the business, add the missing context.

Helpful support includes:

• receipt;
• invoice;
• statement;
• agreement or contract;
• note explaining the business purpose;
• note explaining which entity it belongs to;
• matching document, like a loan or purchase agreement.

You can upload the document through a File Request. You can also add a comment on the transaction or task, or use the path your Uplinq team gave you.

What to write in a comment

Keep it simple:

• "This was for client job materials."
• "This was a business meal with a vendor."
• "This belongs to the other LLC."
• "This was paid personally and should be reimbursed."
• "Receipt uploaded in Data Hub."

What happens next

Uplinq reviews the support and updates the transaction if the business treatment is clear. If more information is needed, you may see another question or request.

What's next