Setting up Equity accounts

I'm here to help share how you're able to create a new account, @JulieB206.

You're on the right track, clicking the New button on your Chart of Accounts is the starting point for creating a new account. I'll walk you through the rest of the steps.

1. Go to Accounting.
2. Select Chart of Accounts.
3. Click New.
4. Enter the name of your new account. Say Equity Account.
5. Under Create category under*, select the Pencil icon.
6. Select Owner investment or expenses (Equity).
7. Choose Opening balance equity.
8. Click Save.

I'm adding this reference that'll help you understand your account and its transaction history which breaks down how much money you have or owe: The Chart of Accounts in QuickBooks.

Let me know in the comments below using the Reply button if you've got questions other than creating a new account. I'll be here ready to lead a helping hand.

Thank you for your reply. With the opening balance equity category I cannot create a sub-account though, and I'll need 2 for each of the partners to track investments and expenses

I appreciate your prompt reply, @JulieB206. I've got you the steps to add a subaccount under the existing Equity account. 

Here's how: 

1. Go to the Accounting menu, then select Chart of Accounts.
2. Select New, then select the account type and detail type.
3. Select Is sub-account, then enter the parent account (Equity account).
4. Give your new subaccount a name, then select When do you want to start tracking your finances from this account in QuickBooks option.
5. For the as of date, tell QuickBooks when you want your account to start. Then add the Balance to the account as of the date you choose.
6. Select a Default Tax Code. Note: Only some account types need this, like the bank, credit card, asset, and liability. If you need help, you can learn more about opening balances.
7. Click Save and Close.

You'll want to check out this article to learn more about this process or if you need to change an existing account into a subaccount: Create subaccounts in your chart of accounts in QuickBooks Online.

For future reference, read through this article to learn more about managing default and special accounts in your chart of accounts. 

Let us know again how these steps work for you so we can help you more with your concerns. Take care!

Nope, I'm note getting the sub-account option anywhere. 

Facing the same problem. Have you found any solution?

Please make sure you switch views from Business View to Accountant View. It makes sense to make these new accounts as an accountant, but I guess I didn't realize it until I was halfway through a QB Support Call. Hope this helps.

I followed all the steps above - there is no detail type for owners equity. The only option is Retained Earnings. How do I find Owners Equity? 

I’m trying to set up my initial opening equity.  I went to Chart if Accounts, selected New, used Owners Equity for a Categiry Name, the clicked in Select Category (pencil), selected Owners investments or expenses, but the only option is then Retained Earnings. How do I get an option for Owners Equity. 

I appreciate you following my colleague’s suggestions above, @Will84. I’ve got some troubleshooting steps to help you setup your Owner’s Equity account.

I’ve replicated your concern on my test file and verified it works fine. If you’re using the Business view, there should be Owner’s Equity, since this is a default account in the program. See this screenshot below:

You’ll want to switch to Accountant view. This offers more account types specifically for your business, including the Owner’s Equity. Take a look at these snippet:

I’ve added this article in case you’re interested to learn more about each view and how to switch between them: Switch between Business and Accountant view in QuickBooks Online.

If the issue persists, let's access your QuickBooks Online (QBO) account in a private or incognito window. From there, go to your Chart of Accounts and create the Owner’s Equity account. This way, we can check if this is a cache issue.

The browser uses cache data to speed up the loading of web pages. However, an excessive amount of junk files can result in strange behavior that affects your account's functionality. Since an incognito window doesn't save any cache data, using one helps us identify the issue. To do so, please refer to these shortcut keys:

• Press keys: Ctrl + Shift + N (Google Chrome browser)
• Press keys: Ctrl + Shift + P (Mozilla Firefox & Microsoft Edge browser)
• Press keys: Command + Shift + N (Safari browser) 

If you're able to see and create the Owner's Equity account, I’d suggest clearing your regular browser's cache to refresh the system. If the issue persists, I recommend using other supported browsers so we can check if this is a browser-integrated issue. 

Feel free to read these resources about managing your COA and understanding which accounts can be deleted, edited, or merged:

• Learn about the chart of accounts in QuickBooks Online
• Manage default and special accounts in your QuickBooks Online chart of accounts

I'm just around the corner if you need further assistance with your Owner's Equity account. Drop a comment below, and I'll get back to you as soon as I can.