How to deposit money to owners equity?

QB-Learner · ‎12-10-2018

I skimmed through some info from the forums but am still confused.

I have a business account (Bank Type) this is where all payments/deposits go.

Now, from time to time there is not enough funds in my business account and I have to pull out of personal money to be able to make a transaction.

How do I deposit or put my personal money into Owners Equity? that will in turn be able to deposit into my Business account? And can QB track how much you have put into the business from personal funds?

Thanks in advance.

Rustler · ‎12-10-2018

I recommend you have the following for owner equity accounts
owner equity
owner equity drawing - you record value you take from the business here
owner equity investment - record value you put into the business here

So you make a deposit in the bank account and use owner equity investment as the source account for the deposit.

I have a step by step targeted tutorial on equity, see this posting if you are interested
http://onsale-apparel.com/Rustler/my-tutorials

View solution in original post

Rustler · ‎12-10-2018

I recommend you have the following for owner equity accounts
owner equity
owner equity drawing - you record value you take from the business here
owner equity investment - record value you put into the business here

So you make a deposit in the bank account and use owner equity investment as the source account for the deposit.

I have a step by step targeted tutorial on equity, see this posting if you are interested
http://onsale-apparel.com/Rustler/my-tutorials

View solution in original post

jdm7dv · ‎12-10-2018

Is this answer legal?

qbteachmt · ‎12-10-2018

@jdm7dv Sure, it is legal to make a deposit as Equity, for the sole proprietorship that is Owner, who funds their business bank account from personal funds. It is not how to track Funds provided to an LLC or Corporation. For those entity types, you might have a Loan scenario; it is Not Right in the tax regulations for a Single-member LLC or Sole Proprietorship to consider your business is in debt to/from yourself.

tphaeulz · ‎02-07-2019

What if the cash wasn't deposited? How do I show that the cash spent (money from client) was owner payment?

qbteachmt · ‎02-07-2019

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.

tphaeulz · ‎02-08-2019

Thanks

DA6160 · ‎05-09-2019

Very legal, you are just categorizing the transaction to select funds in our out, and how. Everything else the CPA determines. Good luck.

quinn1 · ‎11-19-2019

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?

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How to deposit money to owners equity?