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