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October 6, 2024
Question

How to create and manage CAP TABLE

  • October 6, 2024
  • 1 reply
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How to create and manage CAP TABLE

1 reply

October 6, 2024

Thanks for posting in the Community, NiluJ.

 

Cap tables tell you who owns how much of a company. While the option to directly create one is unavailable in QuickBooks Online, you can record an owner's contribution or capital investment instead. This way, you can track personal money used for the business.

 

To do this, you'll need to set up an equity account first. Then, you can follow the steps below to record the investment.

 

  1. Go to the +New button.
  2. Select Bank deposit.
  3. Fill out the form with the investment details. Ensure to choose the appropriate equity account from the dropdown list in the Account field.
  4. Specify a Payment method and enter the investment amount in the Amount field.
  5. Click Save and close.

 

Take note that you don't need to record the investment if you've connected your bank account to QuickBooks. Instead, you just need to categorize the transaction associated to your deposits. 

 

Then, you may follow the steps in this article to pay back the funds from the investment: Record paying back an investment.

 

For more details, refer to this article: Record an owner's contribution or capital investment in your business.

 

Come back to this post if you have other questions about recording investments in QuickBooks Online, NiluJ. I'll be around to help you out.