How do you send an electronic payment to an owner.

Hello there, finance. I'm here to provide information about paying an owner's draw using ACH or electronic payments in QuickBooks Online (QBO) to maintain clean financials.

Currently, QBO does not support electronic payments or ACH transfers directly to owners. Instead, you'll need to issue a standard check. Before doing so, make sure you have set up an Equity account.

Here's how:

1. Go to Transaction on the left panel, then select Chart of Accounts.
2. Click New.
3. Type an Account name.
4. From the Account Type drop-down menu, select Equity.
5. In the Detail Type drop-down menu, choose either Owner's Equity or Partner's Equity, depending on your situation.
6. Select Save.

Once done, you can create and record checks by following these steps:

1. Click the + New option at the top, then click Check.
2. In the Payee dropdown, select the recipient of the check.
3. From the Bank Account dropdown, select the account from which you want the funds to be withdrawn.
4. Fill in the necessary details, including the Owner's equity you created in the Account field.
5. Click Save and close.

For more detailed information on this process, check out this article: Set up and pay an owner's draw.

Additionally, you may find these articles helpful for further insights on owner’s draws:

• Salary or draw: how to pay yourself as a business owner
• Add an owner or partner to your books

Feel free to tag me in the comments if you have questions about paying an owner's draw using ACH or electronic payments. I’ll respond as soon as possible.

@finance-cleanflo 

Do you need to reimburse the business expense to the owner's personal bank account or else?