QuickBooks Owners Draw vs Owners Equity

QuickBooks is popular accounting software that helps businesses manage their finances. It’s easy to use and can be used on a computer or smartphone. QuickBooks owners can use it to track their spending, income, and assets. They can also create reports and graphs to show how their business is performing.

QuickBooks Owners Equity is one of the most important features of QuickBooks. It allows you to track the equity in your business and make sure that you are getting the best possible return on your investment. This feature can also help you decide when it is time to sell your business.

What’s Difference Between QuickBooks Owners Draw vs Owners Equity

Well, the difference is really simple, Let me explain it by breaking the terms:

  • Draw: It means what you take out from your business.
  • Equity: It means the property or the fund that still is with the owner.

Owners draw

It is a type of account categorized under equity. You record the transactions there when you have taken something out of the business.

Owners equity

It is again an equity account but taken as an investment. Thus whenever you have put money in the business then you will record your transactions here in the investments tab.

Put it simply:

Owner equity drawing: Use it, if you have taken money out.


Owner equity investment: Use it, if you have put something in.

If you need more info or if you are having any issues using QuickBooks then you can get our Consultant services. Our QuickBooks Experts are proficient to guide on any problem you might have related to the program.