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J
JulieB206
November 13, 2021
Question

Setting up Equity accounts

  • November 13, 2021
  • 2 replies
  • 19 views

I'm so frustrated that I'm on the verge of canceling this subscription. I am trying to set up an equity account for each of the partners in my business. The Quickbooks tutorial says:

  1. Go to Settings ⚙, then select Chart of Accounts.
  2. Select New.
  3. From the Account Type ▼ drop-down, select Equity.
  4. From the Detail Type ▼ drop-down, select Owner's Equity or Partner's Equity depending on your situation.
  5. Save and Close.

 

But when I to into Chart of Accounts and New this is what I see (see attached image), which does not match the instructions. How am I supposed to do this?

    2 replies

    J
    JonpriL
    Level 9
    November 13, 2021

    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.

    J
    JulieB206Author
    November 13, 2021

    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

    katherinejoyceO
    katherinejoyceO
    Level 9
    November 13, 2021

    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!

     

    W
    Will84
    August 9, 2022

    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? 

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