Creating the Equity Accounts
To create the equity account:
- Select the Gear icon which is present on the top right and after that Chart of Accounts
- Then from the top right select New
- After that choose Equity which is present under Category Type
- Then select either partner’s Equity or Owner’s Equity, based upon the situation you are in
- Get the account name filled and also the remaining fields present in the section if required
- Click on Finish
In the case of multiple owners, set up the Partner’s Equity account separately.
You may also want to set them as the sub-accounts as shown below:
- Partner’s Equity > Lee’s Equity > Distributions.
- Partner’s Equity > Pat’s Equity > Distributions.
- Partner’s Equity > Lee’s Equity > Contributions.
- Partner’s Equity > Pat’s Equity > Contributions.
If you are not looking forward to tracking the distributions and contributions separately, then those accounts can be omitted.
Read This: How to Create an Opening Balance Equity in QuickBooks?
Adding the sub-account
- To create the account, follow the above-mentioned procedure
- Check the checkbox of Is sub-account
- Then get the parent chosen of sub-account
- Make sure that the parent account chosen by you is of the same type. For example, if the sub-account is the expense account then the parent chosen by you should also be the expense account
Creating the partners and owners as the Supplier or Vendor
- To do this, firstly go to the Dashboard
- Then select Expenses present at left and after that Vendor/Supplier from the top
- From the right, select the new Supplier or Vendor
- Get the information entered
- Click on Save
Issues users face
How the money is deposited into the owner’s equity? Information is removed by you from the forums, but you are confused. You own a business account and all the deposits and payments go to this account. Now what happens sometimes is that your business account does not have enough funds and then you take the money from your personal account, so that transactions are made.
The problem you face is how to put or deposit your personal money in the Owners Equity. This further will be deposited to the business account. Also, you want to know whether QuickBooks will be able to track what amount was used in business from the personal funds.
Read This: How To Record Tax Refund In QuickBooks?
Need Professional Help?
Though QuickBooks ensures that financial and account management becomes easy, there are instances when you may face some issues. In case you are having some roadblocks and queries, just get in touch with the SMB QuickBooks tech support helpdesk at smbaccountants.com. Experts at SMB will handle all your issues efficiently and wisely. QuickBooks technical support team will listen to your problem carefully and ensure that a timely solution is provided for the same.
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