- May 18, 2020
- Posted by: Olivia
Owner investment is the personal money invested by the owners or its partner to the business either to start it or to keep it running. It is very essential for business, especially at the initial stage. It helps them to hire more employees, development, research, and buying equipment etc.
In QuickBooks, you can easily enter your own invested capital or business partner investment and easily track all related transactions such as expenses and income. This is the best way that the information is correctly recorded on your financial reports. So, in this blog we are going to teach you how to record owner investment in QuickBooks.
Learn How To Record Owner Investment in QuickBooks
owner’s capital includes any of the investments, profits, earnings, retained and other funds that belong to the company owner. When recording owner’s investments, you can use a special account to easily track all transactions. If you need to pay yourself or another owner for funds taken from the general business property, you can use the Owner’s draw account to record any transactions. By keeping owner information separate or secure from general company finances, makes it easier to prepare taxes and track expenses and income.
Set Up an owner or partner in QuickBooks
To track the capital, you and your partner have invested in the business, the first thing you record yourself as the owner or partner as a supplier in QuickBooks.
- Go to the Expenses
- Select the suppliers menu and select the new supplier
- Fill all the information that is required and save it.
Set Up an owner’s Equity Account
After Setup an owner or partner as supplier in QuickBooks. Now, you have to create an equity account for the business owner or partner. So, you can see how much has been invested.
- Go to the chart of the account and choose account
- Then, click on the plus icon (+) new.
- Select owner’s equity or partner’s equity as the requirement from the detain in drop down menu
- Fill the required information and click on the save and close the tab.
Record the Owner Investment in QuickBooks
Follow these steps below to record an owner investments in QuickBooks
Steps to Record Owner Investments in QuickBooks
Step 1: Click on the banking menu and click on the make deposit
Step2: Click on the cancel to deposit only investment check into owners account
Step3: Select the deposit and then go to the drop down option and select the checking account to deposit the money into.
Step 4: Enter the name of the person, memo and total deposit in received from, memo and amount columns.
Step 5: Click on the drop down list and select owner’s equity.
Step 6: Click on the save and close to record the investments.
Once done, then record the payment in QuickBooks
Steps To Record Payment in QuickBooks
Step 1: Go to the banking menu and select write check
Step 2: Choose bank account you want to pay the owner from the bank account on drop down menu
Step 3: Click on the pay to the order of the field and select the owner’s name.
Step 4: Access the expenses tab and select the owner’s draw account from the account drop down list.
Step 5: Click on the save and close to record the payment to the owner.
Record Owner Deposit Money Into Business Journal Entry
You can also record the owner’s investment in QuickBooks using Journal entry. In this way you can record the initial capital you invested in your business. It can be a direct cash investment or cash used for buying assets such as inventory or machinery.
Follow these below steps to learn how to record owner’s investment in QuickBooks by using Journal Entry
- Select the top menu bar option and click on the company and select the make general journal entry option.
- After that a new window will open with the same layout like a spreadsheet.
- In this window have five columns as account, credit, Debit, Customers and class.
- In the account column, from the first row click on the owner’s equity and select the all equity account.
- In the next or second row enter the account in which you want to deposit these funds.
- Then, choose one of the saving or checking accounts in the debit column.
- Enter the same amount as the initial investments in the credit column.
We hope that you have well learned how to record owner investment in QuickBooks step by step setting up an equity account as well as journal entries.
Although QuickBooks does not provide any independent features to record and track the owner’s contribution to the business. So, you can use the above information methods to record the owner’s investments. If you are still unable to record then you can contact Quickbooks Proadvisor.