Partner Contributions

We can record it as an expense when moving the transaction, @sw1222. Below are some details to help you with transferring money as partner contributions.

You'll want to enter those funds from the partners as capital investments by setting up an equity account first.

If your bank account is connected, there's no need to record it manually. You can categorize the deposit transaction. However, if you don't automatically import your bank transactions, you can record a deposit into your equity account instead. Here's how:

1. Click + New and select Bank deposit.
2. From the Account ▼ dropdown menu, select the bank account you're depositing the money into.
3. Enter the Date you deposited the money.
4. In the Add funds to this deposit section, enter the name of the investor in the Received from field.
5. Select the appropriate equity account from the dropdown list in the Account field.
6. Specify a Payment method.
7. Enter the investment amount in the Amount field.
8. Select Save and close.

After receiving an investment, you're now ready to pay back the funds from the investment. Otherwise, if you prefer other ways to manage this, you can consult your accountant to ensure the best process to handle these amounts.

Also, if you want to ensure that your books are balanced, you can refer to this resource to get more tips: Reconcile an account in QuickBooks Online.

Moreover, we have QuickBooks Live Expert Assisted that are always available to help you with best practices in setting up and making the most out of QuickBooks Online.

We look forward to hearing back from you. Please keep in mind that we're always here to assist you with any questions or concerns about managing your QBO funds or other transactions. Keep safe always.

Thank you.

I do have automatic bank feeds, but I'm unsure how to categorize each step.

From A to B is an expense.  How do i catagorize it in B?  Is it income or a loan?

From B to C is a loan.  Coming into C is equity?

@sw1222  A loan is money that is meant to be paid back.

If the bosses intend the money to be paid back, then Company A is loaning Company B $5,000 and Company B is loaning Company C $10,000. If it is expected to be paid back within a year, it's a current asset; otherwise, just an asset.

Company A should have an asset, perhaps called Loan to B, for $5,000. Company B should have a liability, perhaps called Loan from A, for $5,000.

Likewise, Company B should have an asset, perhaps called Loan to C, for $10,000 where Company C has a liability, perhaps called Loan from B, for $10,000.

If it is not intended to be paid back, then it is simple Distributions and Contributions, depending on whether it is going out or in.

Regardless, the only way Income or Expense accounts would come into play is if interest is being calculated on the loans. Otherwise, income and expense accounts are reserved for actual business activity (A buying something from B, etc).