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its important to accurately keep track of both the funds invested in a business and the funds drawn from a business sometimes QuickBooks users will mistakenly record owner injections as income or owner draws as expenses the structure of equity accounts can differ greatly due to how the business is organized equity accounts will have different names depending on if its a sole proprietorship a partnership and LLC and S corporation or a C corporation even though these accounts have different names their purpose is similar to keep track of ownership interest in the business QuickBooks will create different account structures for equity depending on the type of business you select when you create the file for this tutorial well concentrate on a sole proprietorship opening balance equity is a holding account used to offset entries when a new file is being set up the balance of this account should be zero once the new file is established owner equity is your retained earnings account your
