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melinda-platinum
Level 1

I added $20,000 into my new start up business checking acct. I then paid myself back. Why is it an expense category in the register if its labeled shareholder equity?

It seems like this $20,000 I paid myself back would just reduce the shareholder equity acct vs be expensed and cause my P
3 Comments 3
Rustler
Level 15

I added $20,000 into my new start up business checking acct. I then paid myself back. Why is it an expense category in the register if its labeled shareholder equity?

When you put the 20K in the business, it should have been coded to owner equity or owner equity investment

when you take it out to pay yourself back the expense (reason) for the payment should use owner equity or owner equity drawing

 

were your entries like that

melinda-platinum
Level 1

I added $20,000 into my new start up business checking acct. I then paid myself back. Why is it an expense category in the register if its labeled shareholder equity?

Yes I used owner equity for initial deposit and for withdrawal. I had been using QuickBooks desktop for over 20 years. This is my first time using QuickBooks Online and it’s not nearly as simplified as the desktop version for playing with the transactions and chart of accounts etc. For whatever reason it has owners equity in the chart of accounts but in the check register is listed as an expense. Which seems like a double negative unless I just don’t know how to read the check register properly yet. 

melinda-platinum
Level 1

I added $20,000 into my new start up business checking acct. I then paid myself back. Why is it an expense category in the register if its labeled shareholder equity?

Yes in the chart of accounts I put it in as owners equity in the deposit and in the withdrawal. For some reason in the check register it’s showing as an expense even though it’s charted as owners equity. Also it seems to be coming off of my profit and loss statement. I am going to contact Quickbooks for support because this doesn’t make sense to me. I have been using QuickBooks desktop for over 20 years and this is my first time using QuickBooks online yesterday. It’s definitely a learning curve. 

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