Looked through the forum and saw lots of answers for what I think are more complicated situations than mine so I'm still confused. I'm starting a custom furniture company. I'm a sole proprietor. I set up an Owner Equity account then 2 sub accounts; Owners Investment and Owners Draw (all 3 Owner Equity type accounts). I spent $1000 from my personal account in separate transactions for supplies to get started. The personal account is not linked to QBO. To account for this initial investment in QBO when I set up the Owners Investment account I chose to start tracking the finances from the account on 1/1/2020 and entered $1000 dollars as the balance on that date. I'm unsure how to enter the expenses but attempted to based on what I read online for example: I went to Home Depot the other day and used my debit card to pay for $60 in supplies from the personal account (part of the initial $1000 that I spent). To enter this I went to expenses, clicked New Transaction, Expense, Payee: Home Depot, left the payment account alone (it defaulted to my connected business account), Category: Job Supplies, Description: Paint and Stain, and Amount: $60. Then I went down a line, Category: Owners Investment, Description: Initial Startup Investment, Amount: -$60. Was this remotely close to the correct way of doing this? When I go to the expense page it shows that expense as $0 because the amounts offset. Would it be possible to have a Cash on Hand account and move the amount from the Owners Investment Equity account to the Cash on Hand account and then just select Cash on Hand as the payment account when entering the expense and not enter the second line with the $-60?
I also thought for the next few months since will be paying for supplies out of my own pocket it would be easier to deposit a set amount (say $500) from my personal account to my connected business account at the beginning of the month for these expenses and use the business card to pay for supplies as needed so that the transactions would be tracked in my bank statements. If I did this I would think to track the deposit I would click "New", "Bank Deposit", choose my business account, Received From: (My Name set up as a vendor), Account: "owners investment", Description: "transfer from personal", Payment Method: "Check" and then the amount ($500). Would that be correct? Then when I have expenses I would simply track them as being paid out of the business account?