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F
FAC-UK
October 4, 2024
Question

How to record initial deposit of cash into business by owner

  • October 4, 2024
  • 1 reply
  • 0 views

Hi, I hope someone can help please as I've read a few posts but I can't seem to work out which is applicable. 

My friend's situation is a brand new business, the business is very simple and small, with cash coming in and expenses going out, no stock, assets or anything complicated. The owner has deposited £2000 cash into the business account, how does he record this? Is it Owners Equity or Directors Loan? He doesn't planned to be paid back any time soon, so no repayments, no interest. 

I've read one discussion on here where it says he needs to be set up a a supplier but when I was in this exact situation (for my similar company a few years ago), I set up a Directors Loan account and pretty sure I didn't set myself up as a supplier but maybe I should have. Any guidance would be much appreciated. Many thanks.

1 reply

G
GeorgiaC
October 4, 2024

Hi FAC-UK, thanks for posting on the Community

 

Personal money used to start the business is typically classed as equity. For support, we recommend checking out our guide on how to Record an owner's contribution or capital investment in your business in QuickBooks Online.

 

If you need any additional guidance, we recommend consulting with your accountant. You can find a local QuickBooks-certified accountant near you on our online directory if you don't have one already. 

 

Thanks for reaching Intuit QuickBooks support today. We'll be here if you have any further queries. 

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