Set up and process an owner's draw account
An owner's draw account is an equity account in which QuickBooks tracks withdrawals of the company's assets to pay an owner. This article explains how to set up and process an owner's draw account.
You will pay the owner using an owner's draw account.
You have an owner you want to pay in QuickBooks.
To create an owner's draw account:
- 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.
- Click Save & Close.
To write a check from an owner's draw account:
- 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