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farmgirlkent69
August 11, 2021
Question

Investment Receipt

  • August 11, 2021
  • 1 reply
  • 0 views

Hi there

I have set up the companies investments under the chart of accounts.  However, every month I get a small return which they pay directly into the bank account.  How do I show this as a return on the investments?  Should I be linking this to the chart of accounts, or just putting this through as a deposit? Many thanks

1 reply

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EmmaM
August 11, 2021

Hello Farmgirlkent69,  What category did you set the investment under in the chart of account? What type of investment is it? 

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farmgirlkent69Author
August 11, 2021

Hi emma

 

The investments are money investments which we have a company looking after.  I have set them up on the chart of accounts as 'investments other'

MJoy_D
MJoy_D
August 11, 2021

Thank you for getting back to us and providing us with more details about the concern that you're having, @farmgirlkent69.

 

I can help you with recording your return on investment.

 

You're right in setting up an equity account from your chart of accounts to track the investment. When recording the investment, you can categorise the transactions using the equity account you've created. Perform this if the bank is connected to your QuickBooks Online (QBO) account.

 

If the bank isn't connected to QBO, you can create a bank deposit instead. For detailed guidance, refer to this article: Record an owner's contribution or capital investment in your business.

 

You can create a cheque to record the return of investment or capital disbursement to yourself, partners or co-owners. Here's how: 

 

  1. Go to the + New button and choose Cheque.
  2. Provide all the necessary information. 
  3. Enter the following information in the Category Details section.
    • First line: The equity account that you've created. 
    • Second Line: Expense account you use to track the interest you pay, and the amount of interest that is part of your payment today.
    • Other lines: Any additional fees and their appropriate accounts.
  4. Click Save and close once you're done.

 

If you're paying with a debit or credit card, you can enter an expense. Check this article for more information about adding a cheque or expense in recording this capital disbursement: Record paying back an investment. 

 

See the following article to guide you in recording personal and business funds and avoiding mixing them: Mixing business and personal funds.

 

I'm always here if you need more help in recording your transactions by leaving a reply below. I'm always glad to help in any way I can. Take care and have a wonderful day!

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