Hi. New to QBO. How do I create an account for Owner's Draw? I only see Owner's Equity.

Welcome to the Community!

I'm here to walk you through creating an owner's draw account in QuickBooks Online (QBO).

An owner's draw account is an equity account used by QBO to track withdrawals of the company's assets to pay an owner.

Here's how to create an equity account:

1. Click the Gear icon.
2. Select Chart of accounts under Your company.
3. Click the New button.
4. Choose Equity from the Account Type dropdown.
5. From the Detail Type dropdown, select Owner's Equity.
6. Enter an opening balance.
7. Hit Save and Close.

Additionally, you'll need to add the owner as a vendor in QuickBooks since you're paying the owner. I suggest consulting an accountant if you need further guidance on how specific transactions affect your accounts. They can offer expertise tailored to your business so you get the best advice on managing your business finances.

I'll leave this article on setting up an owner's draw account for your reference: Set up and pay an owner's draw. It also contains the steps when you're ready to pay the owner.

Lastly, you can run reports in QuickBooks Online to get a comprehensive overview of different aspects of your business. You can read this article for more info: Run reports in QuickBooks Online.

Please never hesitate to leave a reply if you need further assistance with recording your wages. I'll be around to lend a hand when you need it.