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Community Contributor *

How do I enter funds I have paid into the business from my own account

I have paid funs into my business over the last few months but did not know how to enter them correctly. Am now doing the bank rec and would like to correct these errors.

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Best answer 06-19-2019

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Re: How do I enter funds I have paid into the business from my own account


@BandM wrote:

I have paid funs into my business over the last few months but did not know how to enter them correctly. Am now doing the bank rec and would like to correct these errors.


If you file taxes as a sole proprietor then you can not loan money to the business, since the business is legally you.

 

The money you put into the business (sole proprietor) is an equity investment, and later if you take money out of the business then that is an equity draw.

 

If you are taxed as a partnership, you have a choice, an equity investment or you create a company liability account named for yourself and the company pays back that debt

 

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

 

4 Comments
QuickBooks Team

Re: How do I enter funds I have paid into the business from my own account

Hi BandM,

 

Welcome to the Community. I'm here to help you with your concern about entering funds in QuickBooks Online.

 

You can transfer funds from the personal account into your business to ensure there will be no duplication. The Check or Transfer feature will help you move the money within the system.

 

This information is also available from our guide on transferring funds between accounts as well:
 

Transfer funds between accounts.

 

For your visual guidance, check this out:

 

I also suggest seeking expert advice from an accountant on the process to ensure your books will be accurate in the long run. In case you need some additional reference with reconciling, I'm also attaching the article I find helpful:

 

How to Reconcile an Account in QuickBooks Online.

 

Please don't hesitate to come here with all of your QuickBooks needs, such as with recording the funds. The Community is here to ensure your success.

Community Contributor *

Re: How do I enter funds I have paid into the business from my own account

Thank you for the advice. I'm familiar with those solutions. I probably didn't explain it properly. I think I need to record it as a loan as I would like to pay myself back when the business is doing better.

Established Community Backer ***

Re: How do I enter funds I have paid into the business from my own account


@BandM wrote:

I have paid funs into my business over the last few months but did not know how to enter them correctly. Am now doing the bank rec and would like to correct these errors.


If you file taxes as a sole proprietor then you can not loan money to the business, since the business is legally you.

 

The money you put into the business (sole proprietor) is an equity investment, and later if you take money out of the business then that is an equity draw.

 

If you are taxed as a partnership, you have a choice, an equity investment or you create a company liability account named for yourself and the company pays back that debt

 

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

 

Community Contributor *

Re: How do I enter funds I have paid into the business from my own account

Thank you. I am a sole proprietor. I should have mentioned that... also I'm in the uk. 

I'll look into setting up an equity account.

Thanks again