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stairtool
Level 1

We’re do I find owners draw or what category do I use when I pay myself as the owner

It’s must be one of the most asked questions ever how do I categorise what I pay myself ???

1 REPLY 1
Rea_M
Moderator

We’re do I find owners draw or what category do I use when I pay myself as the owner

When paying yourself as the owner of a business in QuickBooks Online (QBO), use the Owner's Draw or Owner's Equity category, stairtool.

 

You'll find this account in your Chart of accounts. However, if it hasn’t been created yet, you can set it up by following these steps:

 

  1. Go to the Gear icon and select Chart of accounts
  2. Hit New account.
  3. Choose Equity as the Account Type
  4. Select Owner's Equity as the Detail type
  5. Enter an Account name and double-check everything.
  6. Once done, click Save80.png

 

Right after, you can create a regular cheque, when you are ready to pay yourself and ensure it affects the Owner's Equity account you created.

 

For more guidance, check out this article: Understanding the Equity Accounts on Your Financial Statements. You can also seek assistance from an accounting professional to ensure proper handling of these transactions, their categories, and any associated tax implications.

 

If you have any further questions, please don't hesitate to reach out. We're happy to help.

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