QuickBooks Blog

Everything you want to know about Owner’s Draw in QuickBooks

Owner's Draw is an equity account on the Balance Sheet. It represents the sum of personal money that the owner has added and removed from the business. I recommend that sole proprietors do the following. 1. Change the name of Retained Earnings to Owner's Draw. If there is already an Owner's Draw, Owner's Investment, or … Continue reading Everything you want to know about Owner’s Draw in QuickBooks

COGS equation: calculating cost of goods sold

Let’s review the traditional cogs equation. It’s very easy to understand. I call this the old-fashioned way to compute cogs since it's not the formula used by modern accounting software such as QuickBooks, which relies on the perpetual inventory system. Even though it seems old fashioned, it's a good formula to memorize. The cogs equation's … Continue reading COGS equation: calculating cost of goods sold