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EdFunders
August 9, 2022
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Setup Investment account from a board reserve

  • August 9, 2022
  • 2 replies
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We are a non profit and currently have an equity account for our board operating reserve. The board has decided to invest a portion of this reserve. The investment company will be withdrawing the funds from our checking account and I am unsure how to record the transactions. I think I know what to do as we begin to earn income from the investment but I am not sure how to set it up to begin with. Any help would be appreciated and thank you! 

Best answer by Rainflurry

@EdFunders 

 

Since you already have an equity account for the balance in reserves, you only need to set up an investment account as a bank-type account in QB.  To record the moving of funds from the bank account to the new investment account, do a bank transfer (Banking > Transfer Funds).  When interest is earned, make a deposit (Banking > Make Deposits) and assign the deposit to your interest income account.  Or, you can record interest income when the account is reconciled (Banking > Reconcile).

2 replies

Adrian_A
Adrian_A
August 9, 2022

Hello there, EdFunders.

 

You can create a bank deposit to record the investment. I've got the steps to achieve this task.

 

Before doing so, I suggest reaching out to your accountant for the appropriate accounts to use.

 

Here's how to create an owner's contribution:

 

First, you'll have to set up an equity account. Second, make a deposit for the investment:

 

  1. On the Homepage, select Record Deposits / Make Deposits.
  2. In the Payments to Deposit window, select the bank account you're depositing the money into.
  3. Ensure the account and selected payments match the deposit slip from your bank. 
  4. Enter the date you made the deposit at your bank.
  5. Select Save & Close.

 

Lastly, create a Check to pay back the funds from the investment. I've added this reference as your guide: Create a Check.

 

To ensure that the transactions match your bank feeds, you can check this article: Match transactions.

 

I'm just a post-away if there's anything that I can help with. 

Rainflurry
RainflurryAnswer
August 10, 2022

@EdFunders 

 

Since you already have an equity account for the balance in reserves, you only need to set up an investment account as a bank-type account in QB.  To record the moving of funds from the bank account to the new investment account, do a bank transfer (Banking > Transfer Funds).  When interest is earned, make a deposit (Banking > Make Deposits) and assign the deposit to your interest income account.  Or, you can record interest income when the account is reconciled (Banking > Reconcile).

    E
    EdFundersAuthor
    August 10, 2022

    Thank you very much! 

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