SUMMER SAVINGS 90% OFF QuickBooks for 3 months* Ends June 27

Buy now
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Work smarter and get more done with advanced tools that save you time. Discover QuickBooks Online Advanced.
sw1222
Level 2

Contributions

My boss's own a few businesses and they have separate bank accounts for each business.

 

Boss A has some of his personal money held in account A and Boss B has some of his personal money held in account B.

I am trying to do the following transaction:

 

Take 5k from account A (boss A is contributing) and move it to account B.  Then move the 5k +another 5k from account B (Boss B is contributing).  Total of 10k is being moved to account c as a partner contribution from both partners to company C.

 

How do i record each of these transactions?  I have automatic bank feeds

Out from A.  Into B.  Out from B. Into C.

 

Is it an expense or income at any point?

2 Comments 2
MichaelaS
QuickBooks Team

Contributions

You can directly record the money entering the partner's business bank account through a bank deposit, sw1222.

 

In QuickBooks Online, it's important to keep personal transactions separate from business ones. Transfers involving personal amounts, like Bank Account A to Bank Account B, shouldn't be recorded in Company A or Company B's books. If these transfers show up in both companies, it's a good idea to exclude them. You should only record the transfer from Bank B to Bank C, as that's the relevant transaction for your Company C's Chart of Accounts.

 

Since these are movement of funds from and to different bank accounts, they can't be categorized as expense or income. You can instead record a bank deposit in Company C to record the contribution where the $10,000 is deposited. Here’s how:

 

  1. Go to the +New.
  2. Select Bank Deposit.
  3. From the Account dropdown, choose the bank account where the funds are deposited.
  4. Input the Date you deposited the money.
  5. In the Add Funds to this deposit section, enter Boss B as investor/contributor. If you want to include both names, you can leave the name field empty and put these details in the description field instead.
  6. Select the appropriate equity account from the dropdown list in the Account field. If you don't yet have an account, you need to set up an equity account first.
  7. Select a Payment method and enter the invested/contributed amount in the Amount field.
  8. Then, hit Save and Close.

 

Please check this article for detailed information: Record an owner's contribution or capital investment in your business.

 

I advise consulting an accountant to guide you in accurately recording these transaction movements.

 

Once you’ve completed the process, you can refer to this article for assistance in reviewing your downloaded bank transactions: Categorize online bank transactions.


Whenever you need assistance with the task process or guidance on what to do next, feel free to collaborate with our QuickBooks Live Expert Assisted Team. These specialized professionals can help you with anything you need for your business

If you have any additional questions or concerns about recording contributions, please feel free to reach out. We are here to help.

Rainflurry
Level 15

Contributions

@sw1222 

 

Your question raises more questions.

 

Are A, B, and C different businesses as well as different bank accounts?  Are they all partnerships?  Are the funds in the partner's equity accounts?  If not, where is the $10K on the balance sheet, and why do you consider it "personal"?  Why are you moving Boss A's funds from A to B to C?  Why not just move it from A to C?  

 

 

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.

Need to get in touch?

Contact us