I have enough equity to take a withdrawal for myself. As of now there is no money in the Owners Equity account. How do I move money into that account

Money should have gone into Owner Equity from your initial cash investment plus annual profits.  That there is no money in equity means either you have no equity or it has already been depleted from losses.or draws.

By any chance do you have a positive yearend balance in Retained Earnings? If so you can distribute from this an move the balance to owner equity

Nevertheless it is all your money so take any of it put of the business and post to Owner Draw.  For sole proprietors and even members of an LLC negative equity is not as big a concern 

I just started the company and didn’t make an initial cash deposit. I built the equity by having two profitable months.  How do I move the profits to owners equity so I can record the money I took from checking? Thanks

You can either create a check or do a bank transfer to move the profits you have from checking to your owner's equity account in QuickBooks Online (QBO), @PC1060. Let me guide you how.

When a company is new, can easily make an initial cash deposit to the owner's equity account in QBO. When you haven't imported transactions from your bank yet, the easiest way to record a transfer of funds is to use the Transfer method. Here's how:

1. Go to the + New button.
2. Select Transfer.
3. From the Transfer Funds From drop-down list, select the checking account.
4. From the Transfer Funds To field, select the owner's equity account.
5. In the Transfer Amount field, enter the profit amount being transferred.
6. Edit the Date field.
7. Enter a description of the transfer in the Memo field (optional).
8. Select Save and close or Save and new to complete the transfer.

In case you opt to record a transfer using a check, you can refer to this article for the complete guide: Transfer funds between accounts. It also contains details about matching a transfer in your imported bank transactions.

After that, I'd recommend pulling up the Transaction Detail by Account report. This is to verify that the profit is transferred to your owner's equity account accordingly. Just go to the For my accountant section from the Reports menu's Standard tab.

Let me know if you have other concerns about keeping your accounts updated or inquiries about managing your transactions in QBO. I'm just around to help. Take care always.

Hello,

There is no relevant account in drop down list for 'Transfer From'.

Is it not when you close accounts, surplus automatically get transferred to Retained Earnings?

How to open new account under 'Charity funds' named Restricted Funds?

Hello, 1231 4602 8299 124.

I'll help you open a new account, and elaborate on details about the Retained Earnings account.

At the end of the fiscal year, QuickBooks automatically transfers the net profits (after draws and dividend distributions) to the Retained Earnings account. 

I take it that you're also trying to move money from Owner's Equity account, or from the Retained Earnings account. 

Aside from using the Transfer function, we can also create a journal entry to move the funds. 

Just to clarify, do you want to use the Restricted Funds account as a bank to track the money? In this case, we can create a bank for it. 

Here are the steps: 

1. Go to your Chart of Accounts.
2. Click the New button.
3. Select the Bank icon.
4. Under Save account under, choose Bank Accounts.
5. For the Tax form section drop-down menu, select the correct type. 
6. In the Account name field, we can enter "Restricted Funds." 
7. Enter an opening balance if needed.
8. Once done, hit Save. 

If you need the Restricted Funds account under a different category, we can consult an accountant. They'll give us an idea of what account type we need to select for it. 

They can also help us create the journal entry to move the funds from the Owner's Equity or Retained Earnings account. 

Take a look at this guide if you need help reconciling your account in the future: Reconcile an account in QuickBooks Online. 

If you have more questions about managing your accounts or tracking your funds, let me know and I'll assist you again. Feel free to add any other concerns you might have. I'll address them accordingly. 

Hello,

I am not asking about bank account at all. And this 'At the end of the fiscal year, QuickBooks automatically transfers the net profits (after draws and dividend distributions) to the Retained Earnings account' has not happened in our accounts from last 2 financial year. What to do ? Its appearing like below in balance sheet

Charity Funds-

   Equity- xxxx

   Retained Earnings-xxxx

   Surplus/(Deficit)-xxx

Total Charity Funds

I also want to have one more account under charity funds- Restricted Funds but not able to do that from chart of accounts, new account... Please guide on that.

Thanks

Thanks for getting back to us here in the Community, @1231 4602 8299 124. I appreciate the effort that you've exerted into this. I'd be happy to help you resolve your concern. 

If you're creating a new company file, simply enter the balance sheet items, including income and expenses. Retained earnings are last year’s net income, so once you have transactions from last year entered into the QB, the retained earnings will have an entry.

On the other hand, if you would like to add an account to the Charity Funds, choose the Equity Account. You can follow the steps below: 

1. Go to Accounting.
2. Select Chart of Accounts.
3. Click New.
4. Under Account Type, select Equity.
5. Select Owner's Equity from the Detail Type field.
6. Enter Retained Earnings in the Name field.
7. Type in the contribution amount in the Balance field.
8. Click Save and close.

Once done, I'm confident you'll be able to record the owner's contribution into your account. In addition, I've also included our detailed guide to creating your new equity account.  

For additional information, may I ask why you are unable to add an account or do you receive an error message while creating an account? Any additional information or screenshot would greatly help me provide a suitable solution to your concern. 

Take note that when it comes to selecting an account, it would be best to reach out to your accountant. It is to ensure that your recordings are accurate. 

To learn more about retained earnings, please refer to this resource: How to view Retained Earnings account details.

If there's anything else I can help you with, please let me know. I'd be happy to get back to you and provide additional assistance. Have a good day.