QuickBooks Owners Draw vs Owners Equity

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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 investments. Thus when ever you have put money in the business then you will record your transactions here in investments tab.

Put it simply:

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

and 

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

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