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Level 1

Creating Equity Account for Owner's Draw

Are there directions for those who have a newer version of Quickbooks on how to set up an owner's equity account when owner's equity is not an option? I've seen all the instructions saying to select Owner's Equity but its not an option then I saw something saying there is a new version of Quickbooks which I may have since I got mine just under 2 months ago. The only options under equity are opening equity balance, partner distribution, partner investments and retained earnings. Any help??

2 Comments 2
QuickBooks Team
QuickBooks Team

Creating Equity Account for Owner's Draw


Let's perform some troubleshooting solutions to get this sorted out, ChelaiB. 


The Owner’s Equity option can be found in the Detail Type drop-down when creating a new account. Let me show you how: 

  1. Go to the Gear icon at the top. 
  2. Select Chart of Accounts.
  3. In the Chart of Accounts window, tap New.
  4. From the Account Type drop-down, choose Equity.
  5. From the Detail Type drop-down, select Owner’s Equity. The S Corporations use Owner’s equity to show the cumulative net income or loss of their business as of the beginning of the fiscal year.
  6. Enter an opening balance.
  7. Press Save and Close.


Here's an article you can refer to for more details about setting up and paying an owner's draw. If the same thing happens, let's try signing in to your QuickBooks Online (QBO) account using a private or incognito window. This mode doesn't use the existing cache data and helps us confirm browser-related issues. Here's how:

  • For Google Chrome browser: Ctrl + Shift + N
  • For Mozilla Firefox browser: Ctrl + Shift + P
  • For Safari browser: Command + Option + P


If it works, go back to your regular browser and clear the cache to delete those temporarily stored files and browsing history. The overtime collection of data can create corruption, however, removing this should fix the issue. You can also use supported, up-to-date browsers to roll out the possibility of a browser-related issue. 


Visit our Help Articles page for more insights about managing your business on your account. 


Please let us know after performing the steps as I want to ensure this is resolved for you. Just leave a comment below and I'll get back to you. Have a great day. 

Level 5

Creating Equity Account for Owner's Draw

Owners equity is used by sole proprietors. Retained earnings is used by corporations. You should check with your tax preparer to see which equity accounts you need to use

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