How to record personal assets transferred to your small business?

Hi Spineback Accounts:

A personal funding of a business expense results in an 'equity' posting.  As such, you should record the asset (trailer) and a balancing entry in owner's equity.

Similarly, the paying of the corporate card with personal money would be:

Debit Liability of Credit Card, Credit Owner's Equity

This represents the fact that the owner/proprietor has funded the business with personal funds, and the business owes them money longer term.  When profitability / cash resources allow, the business can then cut a check to the owner to reduce that liability.

Hope this helps!

Yes it does. Thank you

I operate a boat tour business and would like to transfer my personal assets (boat and truck) to the business. I'm not sure how to enter this into quickbooks desktop. The truck I owe out-right but I have about $5000 remaining on a loan for the boat.

Thanks,

Donna C

Hi Donna C. It's vital you're able to record your transaction the right way. To ensure accuracy in your books, I recommend contacting an accounting professional to get more info on recording the transactions. Doing this will help prevent any future discrepancies in your books. If you're not in contact with one, I encourage you to search for one on our website using this link here. Feel free to ask questions. I'm here to help.

Can we also transfer smaller items like office supplies I bought personally before the incorporation date? And just record them on the first day of incorporation as a debit to expense item and credit due to shareholder? 

Hi Avelyn,

Thanks for touching base with us here.  Welcome!  It's important that you're on the right track when adding items that you've purchased before the starting date of your corporation.  QuickBooks Online is a superb cloud based software with the features you need for your bookkeeping goals.  I'd suggest reaching out to your accountant for their expertise and the best course of action for entering previous purchases, to ensure they're recorded accurately and your accounts are balanced.  If you don't have an accountant we can help you locate a ProAdvisor in your local area.

Please don't hesitate to reach back out if you have any other questions.  We're here for you!

Hi Leith

I appreciate this is a very old post but if you still monitor this site, what is the difference between posting to Equity and posting to a Directors Loan Account.

Thank you

Perry