Set up and process an Owner’s Draw account in QuickBooks

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An owner’s draw account is an Equity Account in which QuickBooks tracks withdrawals of the company’s assets to pay an owner. This is to set up and process an owner’s draw account.

To create an Owner’s Draw account in the company Chart of Accounts:

In QuickBooks Pro and Premier

  • Choose Lists > Chart of Accounts or press CTRL + A on your keyboard.
  • At the bottom left choose Account > New.
  • Click Equity > Continue.
  • Enter the account name (Owner’s Draw is recommended) and description (Monies taken out of the business by the owner).
  • Click Save & Close.

Monies taken out of the business by the owner

To write a check from an owner’s draw account:
In QuickBooks Pro and Premier

  • Go to Banking and select Write Checks.
  • in the Write Checks window, go to the Pay to the order of section, select the owner, and enter an amount next to the $ sign.
  • In the detail area of the check, assign the amount of the check to the equity account you created to record the owner’s draws.
  • Click Save & Close to record the check

compnay check drawn to the owner

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