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What if the cash wasn't deposited? How do I show that the cash spent (money from client) was owner payment?
When the owner keeps funds from customer payments, you still need to process it as Sales. Then, in the Banking deposit window, you can can show "cash went to Owner Equity" and that would be a Negative (for QBO) or, for QB Desktop, it's a provided entry at the bottom of the Make Deposit screen. Please see my attachment.
Very legal, you are just categorizing the transaction to select funds in our out, and how. Everything else the CPA determines. Good luck.
I categorized a cash deposit from my bank feed as owners equity investment. It shows in that account in my chart of accounts, however, when I reconcile for that statement period it shows a discrepency of that amount. Is this amount to be posted to another account or something?