Great to have you here. Let me guide you on how to pay an owner's draw, contactaccurateh.
A sole proprietor will be paid with an owner's draw instead of creating an employee paycheck or paying it as a vendor transaction. We use the owner's draw account (equity account) to track withdrawals of the company's assets to pay an owner n QuickBooks Online (QBO).
To start with, let's create an equity account in the Chart of Accounts page.
Let me show you how:
- Go to the Gear icon on the top menu.
- Select Chart of Accounts.
- Tick the New button.
- Choose Equity from the Account Type drop-down.
- From the Detail Type drop-down, select Owner’s Equity.
- Enter the Name, Description, and Balance.
- Press Save and Close.
Then, write a check from an owner's equity account. Let's make sure we select the Owner's equity you created in the Category field.
I have a link here that provides you with articles about managing your Charet of Accounts: https://quickbooks.intuit.com/learn-support/en-us/advanced-accounting/chart-of-accounts/08?product=Q....
Fill me in if you need a hand with reconciling your accounts or any QBO related. I'm always here to ensure your success. You have a good one.