Owner-equity rollup
The year-end step that folds the year’s owner draws and estimated tax payments into Owner’s Equity so those accounts restart at zero.
In Solo Superstars
Depends on entity type: sole proprietors and single-member LLCs roll draws and estimated tax; multi-member LLCs roll member distributions. Owner’s Investment is permanent and stays.
Example
Draws 12,000 and estimated tax 5,000 → debit 3000 Owner’s Equity 17,000, credit 3200 12,000, credit 3220 5,000.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- draw rollup
- equity close
Related
- Year-end close — Closing the fiscal year: zeroing revenue and expense accounts into retained earnings, rolling owner draws into equity, and locking the year.
- Owner draw — Money you take out of the business for yourself. Not an expense and not salary; it reduces equity.
- 3200 Owner's Draw — Money you take out of the business for yourself. Not an expense and not salary; it reduces equity. A contra-equity account.
- 3220 Owner Estimated Tax Payments — Quarterly estimated income tax paid from business funds on behalf of a pass-through owner. A draw, not a business expense.
- 3000 Owner's Equity — The owner's overall stake in a sole proprietorship or single-member LLC. Contributions, draws and retained earnings roll into it over time.