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October 28, 2021
Question

I would like to pay my husband and I by owners draw. How do I document this on this app? Do I need the payroll version just for this simple documentation?

  • October 28, 2021
  • 1 reply
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The information I found on owners draw gave step by step instructions but it did not say which version of QB I need. My business is very small

1 reply

October 28, 2021

It's good to see you here in the Community, emm0127.

 

Let help and share some information in recording an owners draw in QuickBooks Online.

 

In QuickBooks Online, you can  track withdrawals of the company's assets to pay an owner. First, you'll need to set up an owner's equity account and then write a check from there.

 

To create an Equity account:

 

  1. Go to the Gear icon at the top, and then select Chart of Accounts.
  2. In the Chart of Accounts window, select New.
  3. From the Account Type drop-down, choose Equity.
  4. From the Detail Type drop-down, choose Owner’s Equity.
  5. Enter an opening balance.
  6. Click on Save and Close.

 

Once you've set up the account, you're now ready to write a check from an owner's equity account to pay an owner.

 

Like this:

 

  1. Click on + New.
  2. Select Check.
  3. Choose the bank account where your money will be withdrawn.
  4. Select Print later if you want to print the check.
  5. 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.
  6. Select Save and Close.

 

For more details about this process, you can check out this link: Set up and pay an owner's draw.

I'd also suggest consulting your accountant for other options to record an owner's draw.

 

If you still have other questions, click the Reply button below. I'll be in touch. Have a nice week!