how do I categorize an owner investment in a business so it does not show as cash in that month?

We can set up an equity account to properly categorize owner investments, Terence.

Firstly, you need to set up a vendor profile to track what you contribute to your business. Then, create an equity account in your QBO chart of accounts.

1. Head to the Gear icon, then select Chart of accounts.
2. Select New.
3. Then, from the Account Type dropdown, choose Equity.
4. From the Detail Type dropdown, select Owner's Equity or Partner's Equity depending on your situation.
5. Select Save and Close.

Once you've set up your equity account, you have two options for recording the transactions, depending on your setup:

• If your bank account is connected: Categorize the relevant deposit transaction to the equity account you created. This will automatically reflect the owner's investment.
• If you do not automatically import bank transactions: Manually record a deposit into the equity account you created. For this, follow the steps below:

1. Select + New, then choose Bank deposit.
2. From the Account dropdown menu, select the bank account where the money is deposited.
3. Enter the Date on which the money was deposited.
4. In the Add funds to this deposit section, select the investor's name in the Received from field.
5. From the dropdown list in the Account field, select the appropriate equity account.
6. Specify the Payment method and enter the investment amount in the Amount field.
7. Click Save and close.
   
   

Additionally, I recommend reaching out to your accountant for professional advice. They can offer guidance specifically tailored to your situation and ensure that all steps are carried out correctly.

Afterward, if you've received the investment and are ready to pay it back, you can refer to this article for details: Record paying back an investment

Feel free to use the Reply button if you have other questions about this.