drawings

I'm here to share some info about paying an owner of a sole proprietor business, jpc4.

If you're a business owner, you must be paid using withdrawals instead of a paycheck. To do this, you'll have to set up a special equity account to keep track of asset withdrawals made by the company to yourself. Here's how to do it:

1. Go to the Gear icon.
2. Select Chart of accounts, then click the New button.
3. Set Equity as the account type.
4. Choose Owner's Equity from the Tax form section or Detail Type drop-down menu.
5. Hit Save and close.

Once done, you can simply create a regular check to issue the payment. Be sure to affect the account you created. 

For tips in recording and tracking your payables in QuickBooks Online, I recommend reading this article: Learn the difference between bills, cheques, and expenses.

Please know that we're open here 24/7, so please don't hesitate to visit us again if you still need more help in handling your other business transactions. The Community always has your back. 

so i don't use cash in hand or drawings? 

just i was on chat support and this is what they told me to do ?

I class it as Business/Owner Withdrawal.

This way it's correctly treated but does not appear as a business expense when you do your income and expenditure reports..