New QB Account - Correct Setup of LLC

thestable · ‎August 27, 2021

Hoping the community can help :)

So I am new to QB and have recently opened and account for my startup (an LLC); my initial goal is to correctly have my historical books for 2020 in order, and then make sure 2021 is also correct. My question is:

2020 I had no revenue and just expenses, most of which were paid across different personal checking accounts and personal credit cards. I have manually imported each card's relevant expense transactions into QB, allocated the to the correct chart of account, but how do I account for these expenses as essentially being "Owners Investment / Equity" into the business? A journal entry of the total of all expenses? Anything else I should do to make sure that my 2020 Balance Sheet / Statement of Operations is accurate?

Thanks in advance....

Ryan_M · ‎August 27, 2021

I'll provide you the steps to record an owner's investment in QuickBooks Online (QBO), @thestable.

The first thing to do is create an equity account to record the expenses. Here's how:

Go to the Gear icon, then select Chart of Accounts.
Press New.
Set the Account Type to Owner's equity, then the Detail Type to Owner's Equity.
Hit Save and Close.

See this article for the complete process: Record an owner's contribution or capital investment in your business. Scroll down to Step 2: Record the investment to continue. It's always best to consult your accountant for these matters to ensure your books remain accurate.

When you're ready to pay back the owner's investments, check out this article for the steps: Record paying back an investment.

Tag me in a comment below if you have other questions about the owner's investments in QBO. I'll be sure to get back to you. Enjoy the rest of the day!

View solution in original post

Ryan_M · ‎August 27, 2021

I'll provide you the steps to record an owner's investment in QuickBooks Online (QBO), @thestable.

The first thing to do is create an equity account to record the expenses. Here's how:

Go to the Gear icon, then select Chart of Accounts.
Press New.
Set the Account Type to Owner's equity, then the Detail Type to Owner's Equity.
Hit Save and Close.

See this article for the complete process: Record an owner's contribution or capital investment in your business. Scroll down to Step 2: Record the investment to continue. It's always best to consult your accountant for these matters to ensure your books remain accurate.

When you're ready to pay back the owner's investments, check out this article for the steps: Record paying back an investment.

Tag me in a comment below if you have other questions about the owner's investments in QBO. I'll be sure to get back to you. Enjoy the rest of the day!

thestable · ‎August 29, 2021

Many thanks Ryan - apprecated.