Record Owner's Draw in QuickBooks

Methods to Record Owner’s Draw in QuickBooks

Single owners of a company can draw out money for their personal use from the funds used in business. It becomes necessary to keep precise data of the debits and credits so that the records of the QuickBooks account for professional and personal use are not messed up. To avoid such a situation, users can create a separate account named owner’s draw in QuickBooks.

There are various methods for recording the owner’s draw in the QB software. You may try using the Banking tab that will be accessible on the QuickBooks window. Additionally, the Chart of Accounts button can help you in entering the owner’s draw. You will find this feature in the Lists menu of the QB homepage. After recording the amount, your accounts can stay better organized.

How do I Record an Owner’s Draw in QuickBooks?

For accounting-related reasons, it is important to keep a record of the amount that is withdrawn by the owner from the company. Different options are available to record an owner’s draw in QuickBooks. Via the Banking option, it is possible to record the owner’s draw. You will find this tab on the homepage of the accounting software. Alternatively, the users may go for the Chart of Accounts button for entering the owner draw. 

Method 1: Through Banking

Users can enter the owner’s draw in QuickBooks by availing of the Banking option. You need to launch this accounting software and tap on the Banking tab. Then move to the Write Checks button. The business account is to be selected from the given drop-down of Bank Account. You are also required to fill up the owner’s name while recording the withdrawn amount.  

More steps are given below to understand how to record an owner’s draw in QuickBooks:

  • In the initial step, please run “QuickBooks”.
  • Click on the menu for “Banking”.
  • Press the “Write Checks” option.
  • From the available drop-down of “Bank Account”, pick the business account that will be used for withdrawal.
  • The owner’s name has to be filled in for recording the withdrawal from the “Owner’s Draw Account”.
  • Next, go to “Expenses”.
  • Tap on the available drop-down of “Account”.
  • Choose “Owner’s Draw”.
  • In the column of “Amount”, type the total withdrawal amount. 
  • Select the “Save & Close” button.

After you press Save & Close, the withdrawal amount will get recorded in the owner’s draw account.

Method 2: Via Chart of Accounts

The Chart of Accounts can turn out to be one of the apt buttons while recording the owner’s draw in QuickBooks. The Lists option has to be chosen. Tap on Chart of Accounts and press the Add tab. Then hit the Equity Account feature. In Account Name, fill up Owner Draws. Head to the Ok option after this. Further, move to the Banking button and keep following the directions.

How to enter the owner’s draw in QuickBooks can be learned with the remaining procedure here:

  • Tap on “Lists” on the “QB” homepage.
  • Press “Chart of Accounts”.
  • Select “Add”.
  • Choose “Equity Account”.
  • Then you need to type “Owner Draws” in the field of “Account Name”.
  • Hit “Ok”.
  • Go to “Banking”.
  • Click on “Write Checks”.
  • In the field of “Pay to the Order Of”, your name is to be typed.
  • Fill up the withdrawal amount.
  • Now, move to “Account”.
  • From the drop-down menu, choose the “Owner Draw” option.
  • Push “Save and Close”.

At last, you will be able to enter/record owner draw in QuickBooks. While you do this method, any values entered should be twice-checked before saving the information.

In Closing

Withdrawals can be made by the single owner of a company for personal or any other usage. The user needs to manage those transactions data of the company by recording it in the owner’s draw account in QuickBooks. Therefore, the blog discussed two separate methods to record the owner’s draw in the accounting software. Once recorded or entered, your financial information should get more organized.

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