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!

@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

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

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!

I need to set up a new Vanguard brokerage account for one of our clients and am FULLY aware that Quickbooks Online can barely handle basic accounting.   He intends to use his Vanguard account as the "profit' account for the Profit First Model (there will be monthly transfers into the account); however, there will be other transactions (i.e., buys/sells) against the same account.  I'm not sure that QBO will be able to link to this account even if we try to fool it into believing that the account is merely a bank account.  What would be your suggestions for the easiest way to handle this?

Thank you for joining the conversation, Gina.

Brokerage businesses often have specific requirements related to tracking investments, managing portfolios, and generating reports for clients. These requirements may include features such as real-time stock market data integration, trade execution tracking, and advanced reporting capabilities.

While QuickBooks Online may not have these specialized features out of the box, it can still be used by brokerage businesses with some customization and workarounds. For example, you can manually enter investment transactions and use the available features to track income, expenses, and generate basic financial reports. However, I highly suggest consulting an accounting professional for this, and let us know if they have special instructions that you find hard to replicate in QuickBooks.

Additionally, QuickBooks Online offers integration with various third-party applications and services that can help bridge the gap between the software and the specific needs of brokerage businesses. These integrations can provide functionalities such as real-time stock market data feeds, automated trade execution tracking, and more advanced reporting options.

1. Go to the Apps menu on the left-hand side.
2. User keywords related to brokerage businesses

Feel free to go back to go back to this thread if you have more questions in mind. I'm just around to help.

Okay, this is excellent information. So how do I record the money I transfer from my Day Trading LLC company to my Ameritrade business account? This is the money I'm using to do my trading each week. I'm almost 100% sure it is not an expense account, but I want to make sure.

Okay, this is excellent information. So, how do I record the money I transfer from my Day Trading LLC company to my Ameritrade business account? This is the money I'm using to do my trading each week. I'm almost 100% sure it is not an expense account, but I want to make sure.

I've got the information you need to address your concern, Chicks Accounting.

If you transfer funds between two brokerage accounts within the same business, you can record it as a bank transfer in QuickBooks Online (QBO). Moreover, you can create a check or expense in the Day Trading LLC account and record it as a bank deposit in your Ameritrade business account if it's from one company to another.

To create a check or expense:

1. Go to + New.
2. Select Check or Expense.
3. Choose the bank account the funds are coming from.
4. Type in the Payee, Payment Date, and the Payment Method 
5. Under Category details, in the Category column, select an Asset.
6. Enter the amount to be transferred in the Amount column.
7. Click Save and close or Save and new.

To make a bank deposit:

1. Hover to + New.
2. Click Bank Deposit.
3. Choose the bank account the funds are going to.
4. Enter the Date.
5. From the Received From dropdown, select who sent the money. 
6. From the Account column dropdown, select an Equity or a Liability account to reflect the funds coming into the business.
7.  Input the amount you've received in the Amount column.
8. Click Save and close or Save and new.
   
   

I also recommend consulting your accountant to ensure accurate of books. If you don't have one, you can find a professional through this link: https://quickbooks.intuit.com/find-an-accountant/.

Moreover, you can initiate a fund transfer from your bank account to your credit card account, enabling you to manage your financial resources for upcoming obligations efficiently. 

I'm always available to assist you regarding transferring and recording funds in QBO. Just tap the reply button for your response. Best wishes!