Hey, everybody, it's Candus and in today's QuickBooks tips and tricks,
I wannna answer a question that I got on YouTube.
So let's go over to my YouTube channel.
I had created a video a few months ago back in December, actually,
about owner's equity.
And if you, the video talks about,
if you have a loan where somebody is giving you money,
I shouldn't call it a loan.
If somebody is giving you money, and it's not a loan,
and you put that money into your business,
how would you enter that into QuickBooks?
and I'm talking about doing it through equity, because
owner's equity is actually
what you're doing because you're contributing money into your account.
If you want to know more about it, feel free to watch this video.
But I had a question posted today. And she wanted to know,
Samara wanted to know
that she had been using her owners when she created her business bank account,
she used owner's contribution to use it.
And she wanted to know if it was okay to keep using it.
So let me go in and show you what that looks like inside of QuickBooks.
So this is a data file that I created for my course that I teach.
So I want to go in and show you what I would do.
So if you go under lists, Chart of Accounts.
Typically, when you open up your bank account,
it goes, you'll notice to the right here, there's different types of accounts.
And you'll see these say equity on them.
And there's one called opening balance equity.
If you double click on that,
you'll see
there's different things in here, we said we started a checking account with $100.
we owed on our credit card for this, the data file that I was teaching on
$200 and there was a loan for
$100,000.
And so all of these different things encompass
the opening balance equity.
So there's also you'll notice,
owner contribution that's been created as an equity account,
and shareholder contribution as long as,
as well as shareholder distribution.
So what the differences are is depending on shareholder has to do with the corporation,
owner contribution has to do with being a sole proprietor.
So what you're gonna want to do
is if you already have an owner contribution account,
if you ever put money into your business,
from your say personal account, that would be owner contribution.
And if you ever take money out, that would be distribution,
or draws.
Owner draws is also what people call that.
So what you're gonna want to do is you're gonna want to create one of these accounts.
And the way you could do it is go down here under account,
new,
choose equity.
And you'll see it talks about
what equity is, is it tracks money invested or money taken out of the business
by owners or shareholders.
So if you click Continue,
what you do is you would title this, whatever you want.
Now if you're a corporation, it's going to be
shareholder,
contribution or distribution.
And if you're a sole proprietor, it would just be owner.
If you have more than one owner, you can identify the owners.
And if it's a LLC, it's usually
partners or managing members. And you would put that in.
Once that's entered, you would save and close it.
And then you'll see it pop up in here.
And then what you would do is if you were wanting to
say you had expenses that you pay personally, but they were business
expenses, but you paid for them personally,
and you want to put those into QuickBooks,
the first thing you could do
is you can actually
go in directly in here and double click on it.
Type in the date
where you paid it to.
So let's just say it was Office Depot,
and it was $20.05.
And then you would pick office supplies so,
you're choosing what type of expense you paid for here,
and you're clicking record.
What that's doing
is
it's
I'll show you if you do Ctrl Y,
it'll give you a little journal,
if you do Ctrl Y while you're clicking on it,
what this will do is it will
increase the business expense and credit it towards owner contribution.
If you're putting money
into your checking account, you could actually go into your checking account,
make a deposit,
choose a checking account, choose the date,
go to your owner contribution
or shareholder contribution depending on what you have
put in 100 and let's just say $300.
I recommend putting a memo.
So let's just say
money
from personal
account,
blah, blah, blah, you put in whatever you want to remember what it's for.
Make sure you're putting in the right bank account,
making sure it's the right date,
putting up
the account it came from as owner contribution meaning
you're putting money into your business,
hit save and close
and it will show up
part of her question was, she already had this is it okay to still use it?
And the answer is yes,
owner contribution can be, can be a collective of all the money in
and all the money that you've taken out,
can either go under contribution or distribution
and then at the end of the year,
you can actually go under reports
go to company and financial and your balance sheet,
look at balance sheet standard.
If you go down to the owner contribution,
and you double click on it,
it will give you anything that has happened
within that period of time.
So you would give your tax professional the end of the year,
all of your contributions and distributions that you've taken,
and it will keep track of it and you can get that through your balance sheet.
So I think that was probably more than what your question was,
but I hope you enjoyed it.
If for some reason, I didn't answer your specific question.
I didn't understand it.
Please leave a comment again and I will
give me a more clear, quite clear question and I'll answer for you.
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Bye-bye.