The transaction or amount removed from accessible capital, or let's say equity, is referred to as an owner's withdrawal. The monies are intended to be used for personal purposes in this case. This type of withdrawal cannot be classified as a commercial transaction; instead, it should be referred to as a capital reduction. Simply put, when you own a firm, you have the option of keeping some of the equity for personal use or future business investment. It will be considered Owner's withdrawal if you remove it to process it further. Learn How to Owners Draw Quickbooks.