If you are a sole-proprietor, you may have wondered about the Owner’s Draw account and how it works. I’ll try to explain it in a way that makes sense to people who use 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