Mr. Slant, it sounds to me like Owner’s Draw is currently set up as an expense account. Is that correct?
If so, that explains why there is this confusion. When I set up a chart of accounts, Draws are always an equity-type account. Thus, net income is calculated without the Draws. Draws appear on the Balance Sheet (Owner’s Equity - Draws + Net Income = Total Equity). Done correctly, there is a final closing entry at the end of the year that zeroes out Draws and reduces Owner’s Equity. Thus, no special term like “gains” or “plowback” is needed - the change in Owner’s Equity is the dollar figure you’re trying to calculate and name. (Some people and software programs call this Retained Earnings instead. Accountants sometimes get into debates about whether it is proper to talk about Retained Earnings outside of a corporate structure; many prefer Owner’s Equity for a sole proprietor.)
Some business owners are confused by the use of equity accounts and the balance sheet because they want to see Draws as an expense. This is really not the correct way to do it. However, for those who insist, QuickBooks (and most other accounting packages) has a type of account for “Other Expenses” and that’s the compromise I’ll recommend. That way, you can see an Ordinary Net Income that excludes the owner’s draws, even if the total Net Income does include them.