I usually do my friends taxes every year, this year he went from a sole proprietier vbusiness to a one owner llc. Instead of writing a paycheck to himself he withdrew cash from business account for his pay. how do i handle this at year end?

just owner?s draw on his book, I mean onhis biz bank account; Owner's Draw, usually called simply "draw," is the amount taken out by the owner of a sole proprietorship or a SMLLC ,partnership for his or her personal use. Owner's draw decreases the owner's capital account in his balance sheet but inocme statement is not affected. This is the account on the business balance sheet that shows the amount the owner has invested in the business, minus amounts taken out in draw, at any point in time.
How much a business owner takes out of the business as a draw has no affect on the profit of the business. Owner draw is not an expense of the business and amounts drawn are not tax deductible to the business. Owner draw is also not taxable to the business owner. .Taking a draw does not affect the owner's taxes, because it is not taxable income.