Hello there, markg9.
We can use the equity-type account in adding the brokerage in QuickBooks Online. However, I would suggest consulting your accountant first to make sure that everything is good when doing it. Also, they are the ones who can verify and give advice on this matter.
You can follow the steps below in adding the brokerage account:
You can always get back here if you have other questions. I'm always here willing to help you further. Take care!
NO, you do not use equity for income producing activities
Day trading, if this is your business that is one thing, if this is personal then it does not belong in a business accounting file. Assuming it is your business ...
QB can only handle the gross accounting, it can NOT handle stock ticker symbols, gain and loss, and will not provide anything close to a report that can be used for income tax reporting.
In truth, day trading is not something that can be done very easily in QB at all, but
1. create a bank type account for the brokerage
2. when a sales is complete
2a. post a check, do not print, from the brokerage bank and use COS, a cost of sales account you create (COGS type and COS detail) , as the expense
2b. show a deposit in the brokerage bank in the amount received, and use trading income as the source account for the deposit.
income will be reduced by expense on the P&L
We'll have to set up an Equity Account, VJDS.
I've got the steps on how we can do this. Here's how:
Before doing so, I'd recommend reaching out to your accountant so they can guide you on what Detail Type in the account is best to use.
Afterward, you'll have to create a Journal Entry to make an adjustment. You can do that by clicking the + New button and then select Journal Entry.
I've also added this article on what account is used to credit the amount: Selling, buying, transfer of shares among business owners.
Just a heads up, this article is in a global version but, the steps and the way to record it are the same.
Feel free to get back to me if there's anything that I can help. Stay safe!