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A
Agustin Bax
November 23, 2023
Question

Partner investment

  • November 23, 2023
  • 2 replies
  • 0 views

Good morning,

 

How do I register the sending of money from the owner of a company from his personal account (not the company's) to his employee's personal account to make expenses for the company?

 

Is it correct to set up a bank account (checking) with the employee's name and register the sending of money as a "partner investment" and register the expenses that the employee makes in this account in order to set up a record and know if he owes money or he owes money to the company?

 

Attached is a screenshot of how I am doing it.

 

2 replies

A
AnneMariee
November 23, 2023

Thanks for dropping by the Community, agubax.

 

I appreciate you sharing your process in setting up an account to record an employee's expenses for the company. I've got here a suggestion that can help speed up your workflow.

 

You can make a clearing account to create a trail of your employee's expenses. 

To have a more specific rundown of each of your employees, you can add sub-accounts under the parent account. Then, create a journal entry to record the funds transfer from the owner's personal account to the clearing account.

 

Here's how:

  1. Click the + New button.
  2. Select Journal Entry.
  3. On the first line, select the clearing account.
  4. Enter the purchase amount in the Debits column.
  5. On the second line, select Partner's equity or Owner's equity. If you don't have the option to select either, you'll need to create an account under the Equity type.
  6. Enter the same purchase amount in the Credits column.
  7. Select Save and close.

Once done, you can record expenses made by your employees from the clearing account moving forward.

 

I'll leave these articles for more info:

 

You might want to generate reports to get insights about your expenses. Here's an article about personalizing reports to show your desired details: Customize reports in QuickBooks Online.

 

Feel free to add a comment below if you have other questions about recording your expenses. I'll get back to make sure you're taken care of. Wishing your business continued success.

A
Agustin BaxAuthor
November 23, 2023

Thank you so much !

 

Is the same to create a bank deposit instead of a journal entry to record the partner investment ?

C
CamelleT
November 23, 2023

Creating a bank deposit to record investment isn't totally the same as making a journal entry, agubax. 

 

You can create a journal entry to record the business expenses you paid for personal funds. However, if you want to track it as a capital investment or owner's contribution to your business, it's when you create a deposit. 

 

Here's how you can record the investment:

  1. Select + New, then choose Bank deposit.
  2. From the Account ▼ drop-down menu, select the bank account you're depositing the money into.
  3. Enter the Date you deposited the money.
  4. In the Add funds to this deposit section, enter the name of the investor in the Received from field.
  5. Select the appropriate equity account from the drop-down list in the Account field.
  6. Specify a Payment method.
  7. Enter the investment amount in the Amount field, then hit Save and close.


Additionally, you can check out this article to help you track loans you used in buying new assets for your business: Record the loan for an asset in QuickBooks Online.

 

I'm all ears if you have further questions about recording investments. Just drop a comment below and I'll be around to assist you. Stay safe!

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