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shelbs9109
October 21, 2020
Question

Investment accounts

  • October 21, 2020
  • 2 replies
  • 0 views

I manage my dad's QBO. He has invested in a couple apartment complexes and assisted living facilities as well as shares in 2 other companies. How do I set these up in the COA and how do I set up income accounts for them?

2 replies

R
RCV
October 22, 2020

It's great to know you're managing your dad's business in QuickBooks Online (QBO), shelbs9109.

 

We can set up the income accounts in the Account Type field on the Chart of Accounts page. For the detail types, it would be best to contact your accountant on what type we need to apply when adding your income account. Here's how to add a new account:

 

  1. Click the Gear icon on the top menu.  
  2. Select Chart of Accounts.
  3. Tick the New button to create a new account.
  4. In the Account Type dropdown menu, choose an account type.
  5. Select the detail type that best fits the types of transactions you want to track in the Detail Type account. 
  6. Enter the details in the Name, Number, Description fields. 
  7. If you’re adding a sub-account, tick the Is sub-account field and enter the parent account. See learn more about parent accounts and subaccounts for more details. 
  8. Press Save and Close.

To learn more about adding an account, check out the Add an account to your chart of accounts in the QuickBooks Online article.

 

I have articles here for more insight about managing your Chart of Accounts:

Keep me posted if you need a hand with reconciling your accounts or any QBO related. I'm always here to ensure your success. Have a great day. 

S
shelbs9109Author
October 22, 2020

Thank you! So do these investments only need income accounts or do I have to also set up an account to show the investment itself as an asset or something?

Kristine Mae
Kristine Mae
October 22, 2020

There's another way of recording investments, Shelbs9109.
 

Instead of income, you'll have to set up an equity account. You can follow RCV's steps at the top in creating a new account and ensure to select the Account and Detail types correctly. You may have to confer with your accountant about the categorization.

 

For more information, please check this reference: Track personal money or investments to your business.

 

If any questions arise, please feel free to reach out to us again. We're just one post away.

Rainflurry
Rainflurry
June 12, 2022

@shelbs9109 

 

There is a lot to consider here.  Does your dad have a CPA?

 

Yes, you want to create asset accounts for the investments.  Does he own a percentage of the real estate or does he own stock in a company that owns the buildings?  How about the assisted living facility? 

 

As far as the stock investments go, they should be recorded as an asset when purchased: debit "Investment in XYZ Corp.", credit the bank account(s) used to pay for the stock.

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