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How to setup and use Owners Equity in QuickBooks Pro - YouTube
Channel: Candus Kampfer
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hey everybody its Candace and in today's
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QuickBooks tips and tricks I want to
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answer a question that I got on YouTube
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so let's go over to my youtube channel I
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had created a video a few months ago
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back in December actually about owner's
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equity and if you the video talks about
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if you have a loan where somebody's
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given you money I shouldn't call it a
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loan if somebody's giving you money and
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it's not alone and you put that money
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into your business how would you enter
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that into QuickBooks and I'm talking
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about doing it through equity because
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owner's equity is actually what you're
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doing because you're contributing money
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into your account if you want to know
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more about it feel free to watch this
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video but I had a question posted today
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and she wanted to know Samarra wanted to
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know that she had been using her owner's
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when she created her business bank
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account
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she used owners contribution to use it
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and she wanted to know if it was okay to
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keep using it so let me go in and show
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you what that looks like inside of
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QuickBooks so this is a data file that I
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created for my course that I teach so I
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want to go in and show you what I would
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do so if you go under lists chart of
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accounts typically when you open up your
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bank account it goes you'll notice to
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the right here there's different types
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of accounts and you'll see these say
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equity on them and there's one called
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opening balance equity if you double
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click on that you'll see there's
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different things in here we said we
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start up checking account with $100 we
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owed on our credit card for this the
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data file that I was teaching on two
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hundred dollars and there was a loan for
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a hundred thousand dollars and so all of
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these different things encompass the
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opening balance equity so there's also
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you'll notice owner contribution that's
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been created as an equity account and
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shareholder contribution as long as as
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well as shareholder distribution so what
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the differences are is depending on
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shareholder has to do with the
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corporation owner contribution has to do
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with your sole proprietor so what you're
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going to want to do is if you already
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have an owner contribution account if
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you ever put money in to your business
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from your say personal account that
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would be owner contribution and if you
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ever take money out that would be
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tribution or drawers owner drawers is
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also what people call that so what
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you're going to want to do is you're
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going to want to create one of these
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accounts and the way you could do it is
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go down here under account new choose
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equity and you'll see it talks about
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what equity is is it tracks money
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invested or money taken out of the
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business by owners or shareholders so if
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you click continue what you do is you
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would title is whatever you want now if
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your corporation it's going to be
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shareholder contribution or distribution
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and if you're a sole proprietor it would
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just be owner if you have more than one
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owner you can identify the owners and if
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it's LLC it's usually partners or
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managing members and you would put that
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in once that's entered you would save
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and close it and then you'll see it pop
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up in here and then what you would do is
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if you are wanting to say you had
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expenses that you paid personally but
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they were business expenses but you pay
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for them personally and you want to put
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those into QuickBooks the first thing
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you could do is you can actually go in
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directly in here and double click on it
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type in the date where you paid it to so
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let's just say it was Office Depot and
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it was 20 dollars and five cents and
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then you would pick office supplies so
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you're choosing what type of expense you
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paid for here and you're clicking record
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what that's doing is it's I'll show you
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if you do control Y it'll give you a
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little journal if you do control Y while
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you're clicking on it what this will do
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is it will increase the business expense
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and credit it towards owner contribution
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if you're putting money in to your
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checking account you could actually go
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into your checking account make a
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deposit
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choose a checking account choose the day
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go to your owner contribution or
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shareholder contribution depending on
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what you have put in 100 and let's just
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say three hundred dollars I recommend
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putting a memo so let's just say can't
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umm money from personal
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account blah blah blah you put in
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whatever you want to remember what it's
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for make sure you put it in the right
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bank account making sure it's the right
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date putting it the account it came from
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is owner contribution meaning you're
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putting money into your business hit
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save and close and it will show up part
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of her question was she already had this
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is it okay to still use it and the
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answer is yes
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owner contribution P can be a collective
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of all the money in and all the money
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that you've taken out can either go
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under contribution or distribution and
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then at the end of the year you can
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actually go under reports go to company
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& Financial and your balance sheet look
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at balance sheet standard if you go down
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to the owner contribution and you double
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click on it it will give you anything
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that has happened within that period of
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time so you would give your tax
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professional the end of the year all
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your your contributions and
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distributions that you've taken and it
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will keep track of it and you can get
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that through your balance sheet so I
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think that was probably more than what
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your question was but I hope you enjoyed
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it if for some reason I didn't answer
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your specific question I didn't
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understand it please leave a comment
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again and I will give me a more Claire
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quite clear question and I'll answer for
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you if you would like to get the tips
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video for you and confidence with
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launched again I do a course to teach
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early bird special so if you know
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somebody who could benefit from the tips
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and tricks about owner's equity please
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share it and don't forget to subscribe
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and like this video I'll talk to you
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guys again next week bye bye
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