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Level 1

Adding previous equipment purchases

This season when starting my business, I purchased a large amount of equipment and supplies with personal cash, prior to opening my business account. I do have receipts for these purchases. How can I add these to my business account (and therefore lower my net income) without affecting what quickbooks thinks my current bank balance is.

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Adding previous equipment purchases

Any personal funds used for the business is Owner Contribution (equitg) and that is how you post it. Enter an "expense" by recording a check from that equity account. In QBO you can directly expense from equity. In desktop it takes using a clearing bank type account.

Step 1. Wite check from clearing account for price paid for equipent as fixed assets. Its expense as depreciation is determined separately and can be 5-10 years or all up front but your tax CPA helps determine that later. 

Step 2. Record deposit into clearing account from your Contribution account.

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