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Mar 8, 2025 4:56 PM UTC
Question

How should I categorize bank transactions when the account purchases units of stocks or mutual funds on our behalf?

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    1 reply

    Apr 6, 2025 12:39 AM UTC

    Is this a business or personal account?  Most investors have a brokerage account with a company, like at Fidelity or Schwab and details are tracked in that account so on your books you can just use asset accounts.

    - Cash   

    - Investments

     

    When you add to your investment account, do this entry:

    DR Investment account

    CR Cash account

     

    You could certainly have multiple investment accounts, if you wanted to keep separate on books also:

    Account 1101 - Investment - Stocks

    Account 1102 - Investment - Mutual Funds