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How to Set up Owners Draw in Quickbooks:- In its most basic form, an owner's draw is a way for business owners to withdraw (get it?) money for personal use from their company. It's a payout from your equity account that results in a decrease in your total share in the company. As a result, a draw affects your balance sheet by effectively lowering the value of your company. You can't deduct an owner's draw as a company expense because it's not the same as a salary. The bright side? It's cash when you need it (or whenever your company has enough cash flow to part with it). The transaction for sole proprietors might be as simple as writing yourself a new check from your business account.

Kaitlyn Dever

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