QuickBooks Online Help: How To Record a Draw
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.

QuickBooks Online Help - Create 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.

Equity - Owner Draw

 

STEP 2: View Register & Add Method

Next, view the register of whatever account you will be drawing from.

View Register of Selected Account

Then add whatever your method of drawing is. In our case, we chose check.

Add Method of Drawing

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.

Set Payee to Owner or Member who will be Drawing

 

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.

Verify Balance Sheet

Make sure that the search dates correspond with the date that you set your transaction for. Then click Run Report.

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.

Equity - Owner Draw on the Balance Sheet

Congratulations! You have now set up your QuickBooks so that you can document a draw. Visit our blog for other QuickBooks Online help tutorials.

 

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