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Shirley G
March 23, 2021
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How can I record depositing money from my personal bank account into my corporation? This was the initial deposit so that the business could start operations. Thank you in advance!

  • March 23, 2021
  • 1 reply
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How can I record depositing money from my personal bank account into my corporation? This was the initial deposit so that the business could start operations. Thank you in advance!

Best answer by LauraAB

Hi again, Shirley.

 

I can tell you have a lot of questions about this and are considering the different way you can handle these finances. QuickBooks Team members like myself are trained in the technical use of the program, but we don't have accounting training. For that reason, even for the questions you've just asked, I suggest an accountant. We do have an article here in the QuickBooks Community that explains the chart of accounts and touches on different account types, which may be able to help get you started before reaching out: Learn about the chart of accounts in QuickBooks

 

As for whether you enter the amount as equity or a loan could depend on a few things that, again, an accountant would be able to help you sort out. However, if you did want to check out how QuickBooks outlines handling business expenses paid for with personal money that you're intending to be repaid, feel free to check out this article: Pay for business expenses with personal funds

 

You may be able to do some research into these areas yourself, but to have certainty with the steps you're taking, an accountant is your best solution. I hope that helps clear things up a bit for you.

1 reply

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LauraAB
March 23, 2021

Hi Shirley,

 

I know that personal contributions are often made as a new business is budding, and it's important to make sure that kind of contribution is recorded correctly for your paperwork. Knowing how to work with this information in QuickBooks Online is also an essential part of bookkeeping since you've chosen this program, and I want to make sure you have the proper direction.

 

QuickBooks Online gives you the opportunity to record many transactions in various ways. For some transaction types, there are built-in features or recommended solutions, however, for this kind of transaction, we don't have an article that outlines a potential solution. It could be a situation where you may be able to use the program's bank deposit feature or it might call for a more accounting-based transaction like a journal entry, for instance.

 

To find out which is the best way to record this for your corporation, I strongly suggest working with an accountant. With their training, accountants have the knowledge for how to handle these sorts of situations, and when they know QuickBooks Online, it's an added bonus. The My Accountant tab in the program gives you the opportunity to connect with an accountant you already have with the option to invite them as a user to the program. You can also take advantage of the Find a pro to help button to research QuickBooks-certified accountants near you.

 

You may also get responses from other users in this forum with their ideas on how you can record this, but if you're ever feeling unsure or need a more immediate response, an accountant is a great asset.

 

I wish you the best with your business!

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Shirley GAuthor
March 23, 2021

Hi Laura, Thanks for your reply, I know looking for an accountant would be ideal but maybe you can help me.

I did entered the transaction using the bank deposit feature and credited it to Equity account "Owner's Capital" Question: Can a corporation use "Owner's Capital" as an Equity account for a corporation? or is this account only for sole proprietorships?

 

I also could have recorded it as a loan but i decided to do it as equity. Would it have been better if i had recorded it as a loan?

 

Thanks!

 

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LauraABAnswer
March 23, 2021

Hi again, Shirley.

 

I can tell you have a lot of questions about this and are considering the different way you can handle these finances. QuickBooks Team members like myself are trained in the technical use of the program, but we don't have accounting training. For that reason, even for the questions you've just asked, I suggest an accountant. We do have an article here in the QuickBooks Community that explains the chart of accounts and touches on different account types, which may be able to help get you started before reaching out: Learn about the chart of accounts in QuickBooks

 

As for whether you enter the amount as equity or a loan could depend on a few things that, again, an accountant would be able to help you sort out. However, if you did want to check out how QuickBooks outlines handling business expenses paid for with personal money that you're intending to be repaid, feel free to check out this article: Pay for business expenses with personal funds

 

You may be able to do some research into these areas yourself, but to have certainty with the steps you're taking, an accountant is your best solution. I hope that helps clear things up a bit for you.

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