Client has deposited an amount into my business account to draw from, how do I set up this draw account to credit their invoice and reduce the draw amount accordingly?

I’ve got the steps to set up the account for your clients draw, larry102. I’d be glad to assist you.

We can create a liability account to track the amount of the retainers you receive from your customers. Here’s how: 

1. Go to the Gear icon, then select Chart of accounts.
2. Click New.
3. From the Account Type ▼ dropdown menu, select Other Current Liabilities.
4. From the Detail Type ▼ dropdown menu, select Trust Accounts - Liabilities.
5. Enter a Name for the account (for example, Trust Liabilities) or accept the suggested name.
6. Select an option from the When do you want to start tracking your finances from the is account in QuickBooks?dropdown list.
7. Tick Save and Close.

For the detailed step-bu-step process to track retainers, you can follow the next steps provided in this article: Record a retainer or deposit.

After that, you may refer to this article on how the Sales page gives you a great at-a-glance view of all the status of sales transactions like open and paid invoices: View sales transactions.

Feel free to keep me posted if you have any other concerns about recording transactions in QBO. I'm always right here to help you all the time, larry102. Stay safe!