The QuickBooks accounting program contains a "Condense Data" tool that decreases the amount of space data takes up on a computer system through removing any completed, reconciled or cleared transactions and substituting them with a single journal entry for the whole month. While this decreases file size, it also removes details and audit info, leaving only a general summary of the transaction to be edited.
Occasionally a business owner will have to make cash withdrawals from their business account. Whether the purpose is to pay themselves, or to have cash on hand for making change, it is required to remove the cash and to record the withdrawal in the QuickBooks software to reflect the account from which the withdrawal was made and the "account" into which the cash was "deposited." If the business is a sole proprietorship, this withdrawal would be called a "draw." If the business is incorporated, this would be a "distribution.
