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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.
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?
Hi thank you for your answer it helped me ~ I just wanted to find out if I am supposed to close out Owners Equity Investment at the end of each year or if it just keeps growing indefinitely as I continue to make personal contributions to my business (which I will do because I am a sole proprietor). Thank you.
It's good to see you in this thread, @kmasta.
I'm happy to hear that the information above helped you. This time, let me share information about how the owner's equity works at the end of the year.
At the beginning of the new year, QuickBooks closes all expenses and income accounts to retained earnings unless you are set up in the system as a Sole Proprietorship since it will close to Owner's equity.
The owner's draw investment and retained earnings should also be closed to owner's equity at the start of the year. That way, during the beginning of the year, you can easily see what you have taken or invested in the business.
Additionally, QuickBooks makes year-end adjustments automatically based on your fiscal year start month. To know more about this, take a look at this article: Close your books in QuickBooks Desktop.
In case you need tips and related articles in the future about the "How Do I" steps in QuickBooks Desktop, visit our QuickBooks Community help website for reference: QBDT Self-help.
If you have any other questions concerning QuickBooks Desktop, please let me know. I'd be happy to answer it for you. Take care.