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MAS HD
December 8, 2019
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How do I record drawings?

  • December 8, 2019
  • 1 reply
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I am new to Quickbooks Online, I am a sole trader and VAT registered.  I am really confused by the various threads about how to record drawings.  I have set up an owners draw as an equity account.  Can someone give me the step by step process for entering the transaction?  I've seen some suggestions it should be a journal entry, another a transfer, another an expense and finally a purchase transaction.  Which is it?

 

Thanks so much

Best answer by JasroV

Thanks for using QuickBooks Online (QBO), @MAS HD.

 

There are many ways to record drawings. We'd recommend speaking to an accountant about how best to record them. As an example if you are taking drawings from your equity you can record the transaction as an expense. Let me show you how.

 

In your QBO:

  1. Click the Plus (+) icon.
  2. Select Expense.
  3. Choose the Equity account from the Payment account field drop-down menu.
  4. Fill in the needed information.
  5. Once done, select Save and Close.

 

If you want more insights on how to better record this transaction specific to your business and situation we suggest contacting your accountant. This way, you'll be guided accordingly.

 

I've also added this article that can help guide you on how to track personal money to your business in QBO.

Don't hesitate to leave a post below, I'm always here if you need further help. Have a nice day!

1 reply

JasroV
JasroVAnswer
December 8, 2019

Thanks for using QuickBooks Online (QBO), @MAS HD.

 

There are many ways to record drawings. We'd recommend speaking to an accountant about how best to record them. As an example if you are taking drawings from your equity you can record the transaction as an expense. Let me show you how.

 

In your QBO:

  1. Click the Plus (+) icon.
  2. Select Expense.
  3. Choose the Equity account from the Payment account field drop-down menu.
  4. Fill in the needed information.
  5. Once done, select Save and Close.

 

If you want more insights on how to better record this transaction specific to your business and situation we suggest contacting your accountant. This way, you'll be guided accordingly.

 

I've also added this article that can help guide you on how to track personal money to your business in QBO.

Don't hesitate to leave a post below, I'm always here if you need further help. Have a nice day!

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