Need assistance with how to record a draw you take from your company? Our QuickBooks Online help article here will show you how to do it.
STEP 1: Chart of Accounts
First, if you haven’t already, go into your chart of accounts and create a new account.
The new account will be of type Equity and detail Owner’s Equity. You should name it something along the lines of Owner Draw or Member Draw. Make sure to save and close.
STEP 2: View Register & Add Method
Next, view the register of whatever account you will be drawing from.
Then add whatever your method of drawing is. In our case, we chose check.
The payee should be set to the owner/member who will be drawing. If they don’t show up on a search in the payee box, make sure to add them as a new vendor. The amount should be set and the account should be set to the account that we just made.
STEP 3: Verify the Balance Sheet
Next, search for and navigate to your Balance Sheet. These last steps are just to verify that everything worked properly.
Make sure that the search dates correspond with the date that you set your transaction for. Then click Run Report.
Finally, scroll down through the balance sheet until you find equity. There should be a line item underneath of equity called whatever you titled the draw account. The amount should be the negative of the transaction that we did earlier.
Congratulations! You have now set up your QuickBooks so that you can document a draw. Visit our blog for other QuickBooks Online help tutorials.