It's nice to see you here in the Community, @savita-clearnexu.
I'm here to share some information about managing owner's draw in QuickBooks Online.
When recording an owner's draw in QuickBooks Online, you'll need to create an equity account. This will handle and track the withdrawals of the company's assets to pay an owner.
Know that you can select the equity account when creating a check for the owner. This way, the said transaction will show up under the Equity account of your Balance Sheet report.
To create an Equity account:
- Select the Gear icon at the top, and then select Chart of Accounts.
- In the Chart of Accounts window, select New.
- From the Account Type drop-down, choose Equity.
- From the Detail Type drop-down, choose Owner’s Equity.
- Enter an opening balance.
- Select Save and Close.
When paying the owner or your business partner, you can create a check.
Here's how:
- Select + New.
- Click on Check.
- Choose the bank account where your money will be withdrawn.
- Select Print later if you want to print the check.
- Fill in the check fields. In the Account field, be sure to select Owner's equity you created. The memo field is optional. It appears in the register, on printed checks, and on reports that include this check.
- Select Save and Close or Save and New to write another check.
For more details about this process, please see this link: Set up and pay an owner's draw.
You can always run the Balance Sheet report to view all the equity's total including your company's net income for the financial year to date.
For your reference, I'm also adding here some articles that you can check out about adding a partner to your books, or recoding an owner's contribution:
I'll make sure you're all set. Feel free to get back to me if there's anything else I can assist you with. Have a lovely day!
