cancel
Showing results for 
Search instead for 
Did you mean: 
bigbang
Level 1

Owner's draw using EIDL loan

Working on a quickbooks pro file for an independant contractor(sole proprietor) that received an SBA EIDL loan.

 

EIDL loan(yes loan, not advance) of $5,000 for example was entered as Uncategorized Income in Bank Account.

 

Entered a check for $100 paid from Bank Account to Owner(vendor), categorized as Owner Draw (for portfolio development work).

 

Now the Owner's draw account shows Negative $100 balance. Is this correct?

 

 

 

 

1 Comment 1
ReymondO
QuickBooks Team

Owner's draw using EIDL loan

I'll help you record properly an owner's draw account in QuickBooks, @bigbang

 

First, let's create an owner's draw account: 

 

  1. Choose Lists and select Chart of Accounts.
  2. At the bottom left, choose Account and then click New.
  3. Select Equity and click Continue.
  4. Enter the account name (Owner's Draw is recommended) and description.
  5. Click Save & Close.

loan1.PNG

Once done, write a check from an owner's draw account:

 

  1. Go to Banking and select Write Checks.
  2. In the Write Checks window, go to the Pay to the order of section and select the owner. Then, enter an amount next to the $ sign.
  3. In the detail area of the check, assign the amount of the check to the equity account you created to record the owner's draws.
  4. Click Save & Close to record the check.


In addition, you can check out this article on how to set up accounts for your loans, and manually track them in QuickBooks Desktop.

In case you want to keep track of your loans and be reminded about upcoming payments, you can track and manage your loans with the QuickBooks Loan Manager.

That's it! Please let me know if there's anything else I can do to be of assistance. Have a great weekend!

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us