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Level 1

How can I add brokerage account to show wins and losses from for day/swing trading?

 
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Moderator

How can I add brokerage account to show wins and losses from for day/swing trading?

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:

 

  1. Go to Accounting and select Chart of Accounts.
  2. Click the New button at the upper-right corner.
  3. Select the Equity account and enter the name of this account.
  4. Once done, click the Save and Close button.

 

You can always get back here if you have other questions. I'm always here willing to help you further. Take care!

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Level 15

How can I add brokerage account to show wins and losses from for day/swing trading?

@SarahannC 

NO, you do not use equity for income producing activities

 

@markg9 

 

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

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Level 1

How can I add brokerage account to show wins and losses from for day/swing trading?

How do I set up a shares trading (securities) accounting in QBO

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Level 1

How can I add brokerage account to show wins and losses from for day/swing trading?

 
Highlighted
Moderator

How can I add brokerage account to show wins and losses from for day/swing trading?

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.

 

  1. From the Accounting tab, select Chart of Accounts.
  2. Click the New button.
  3. Select Equity as the Account Type.
  4. In the Detail Type field, select either Owner's Equity or Partner's Equity account.
  5. Give it a Name.
  6. Click Save and Close.

 

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!

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