How do I zero out my owner's draw account?

Equity accounts, just like all other balance sheet accounts, such as your bank accounts, do not reset each year.

Thank you, but is there a way that I can make sure the account only shows this year's transactions? 

@RRgray2021 

Your owner's draw account is the cumulative total of all draws you have taken out of the business since day 1.  A sole proprietorship (SP) only needs one equity account - Owner's Capital (OC).  OC is the total of your contributions plus your retained earnings minus your draws.  Those 3 accounts should be closed to OC at year-end.  So, look at your balance sheet as of 12-31-22 and close those balances to OC.  If you don't have an OC equity account, set one up. Here is what the journal entry should look like:

After you make the journal entry to close out the balances as of 12-31-22, any balances left will be for 2023 transactions only. 

@RRgray2021  RE: Thank you, but is there a way that I can make sure the account only shows this year's transactions? 

You can use @Rainflurry's steps to close the account each year, but it will always show all the transactions for all time in the account register, just like all of your other accounts.

Sorry @BigRedConsulting.  I didn't mean to jump in and hijack your thread.  The OP sounded like help was needed quickly and I wasn't sure if you would have time to reply.    

No problem! I liked your post.

Hi, I have the same problem with my accounting software, just wondering if you already sort out yours?

I too am having a problem with last year’s owner draws showing in balance sheet. I closed out the accounts per your  instructions 12/31/23 but it still shows lasts years draws. What am I doing wrong??