Recording Owners initial investments (2024)

Congrats on your business, @Giovanna7101.

I'd be happy to walk you through how you can record your business transactions in QuickBooks Online.

Let's start with creating an equity account to handle your business expenses. This account is usually used for the business owner or partner to track money that you invest or draw from the business.

To do that:

1. Go to Gear icon and select onChart of Accounts.
2. Press onNew.
3. From theAccount Type▼ drop-down, selectEquity.
4. From theDetail Type▼ drop-down, selectPartner's Equity depending on your situation.
5. Enter the Name.
6. Hit on Save and Close.

For more details about this process, you can always check out this link:Add an owner or partner to your books.

After that, you'll need to make adeposit to the account that you made. This deposit will be used on your expense transactions afterward.

Here's how:

1. Select+New.
2. Press onBank deposit.
3. From theAccount▼ drop-down menu, select the bank account you're depositing the money into.
4. Enter theDateyou deposited the money.
5. In theAdd funds to this depositsection, enter the name of the investor in theReceived fromfield.
6. Select the appropriate equity account from the drop-down list in theAccountfield.
7. Specify aPayment method.
8. Enter the investment amount in theAmountfield.
9. SelectSave and close.

To give you more details about recording your investment, feel free to visit this article:Learn how to record capital investments to track money going into your business.

Once done, it's time to record your expenses:

1. Choose theNew (+)icon.
2. Pick eitherExpenseorCheque.
3. Select theVAT agencyfrom the Payee drop-down.
4. Enter the necessary information.
5. In theCategory detailssection, choose Equity account for theCategory,Description,Amount, then selectyour VAT codefor theVATcolumn.
6. ClickSave and close.

However, to help verify the VAT code that you will be using and to verify if you are eligible for VAT claims, I recommend reaching out to your accountant. This way, you'll be guided on what are the best way to handle this situation.

You can also consult our accountants through this site:Find an expert.

Once verified, you may utilize this link attached to guide you in setting up and tracking VAT codes in the system:Set up and edit VAT settings, VAT codes, and VAT rates.

Get back to us here if you have other questions about this or with QBO. I'm always here to help.