Let's take a look at What Does Owner's Draw Mean in Quickbooks Online:
How to Open an Equity Account
To create an equity account in QuickBooks Online, simply follow the steps below.
To begin, go to QuickBooks Online and log in.
Then, from the top-right corner of the QuickBooks Online page, select the 'Gear Icon.'
Select the 'Chart of Accounts' option next, followed by the 'New' option.
The 'Account Type' drop-down selection should be set to 'Equity.'
From the 'Detail Type' drop-down menu, choose 'Owner's Equity.'
Enter a starting balance now.
Finally, select 'Save and Close' from the drop-down menu.
Write a Check from an Owner's Equity Account in These Steps:
Following the processes below, we must now draught a check from an owner's equity account:
Select the 'Check' option from the '+New' menu.
In this stage, you must choose the account from which your funds will be withdrawn.
Click the 'Print later' option if you wish to print the check right away.
Fill in the check fields in the Account field, and make sure you've picked the created owner's equity.
The memo section is also available to fill out, although it is not required.
Finally, select either the 'Save and New' or 'Save and Close' option.
In QuickBooks Desktop, how can I set up an Owner's Draw Account?
Follow the steps below to process the owner's draw account:
To make an Owner's Draw account in QuickBooks Desktop, follow these steps.
To begin, open QuickBooks Desktop.
Choose the List option and select it.
In the second stage, go to the Charts of Accounts or press and hold Ctrl+A on the keyboard at the same time.
The Ctrl key is located at the bottom left of the keyboard.
A key is located in the keyboard's left center.