For initial, personal start-up deposits made by the owner, would they be recorded as an equity under either the "Owner Investment" or "Owner Draws" chart of account?
Hi, @NicoleGomez. I'll help you record start-up deposits.
You can keep track of personal funds used to pay bills or start a business. This is referred to as a capital investment by accountants. These money are provided by you, your partners, or other owners.
Let me guide you how to record the investment.
Before you can record a capital investment, you need to set up an equity account. Next, record the investment, but if you've connected your bank account, you don’t need to record the it.
You just need to categorize the transactions associated with your deposits.
You can record a deposit into your equity account instead if you haven't imported bank transactions automatically.
After you receive an investment and you're ready to pay it back, you can click here to learn how to record it.
Additionally, please check out this article if you want to learn how to reconcile your accounts so they always match your bank and credit card statements.
Please let me know if you have any other clarification on matching your transactions. I'll be around. You have a great business!
My bank account transactions are automatically imported. My question is how to record the transaction because as it appears automatically, it is showing as a transfer. To change it from a transfer, I want to categorize it but need to select the right account. Would all deposits made by the owner be considered "Owner Investment (or Owner Contribution)"? And then when any money is paid to the owner it is deducted and recorded as "Owner Draws"?
Hello there, Sandie. I appreciate you for reaching out to the Community.
Yes. QuickBooks Online has a feature to pay back a capital investment if needed. You can pay back yourself through an actual check or a debit or credit card. It's my pleasure to assist you how:
If your going to send yourself a paper check, you can follow these steps:
1. Click the + New icon, then select Check.
2. Enter your name and your Check no.
3. Fill in the following information in the Category Details section.
4. Click Save and close.
If you pay yourself back with a debit or credit card, you can record the repayment as an expense.
I also suggest consulting your accountant. In doing so, we can ensure that you enter the transactions accurately and avoid data messing up with your accounts.
I've also included this article if you want to keep track of your financial snapshot of your company as of a specific date: Run a Balance Sheet report in QuickBooks Online.
Keep me posted if you have further questions about managing your investments and owner's draws in QuickBooks Online. I'm always looking forward to helping you. Have a nice day ahead.