Owner Contributes

  • Thread starter Shoebox Services
  • Start date

S

Shoebox Services

Good morning:

How do I post an Owner's Contribution to a business expense on QB
2005, without using the JE?

Thanks, Lynne
 
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L

Laura

Shoebox Services said:
Good morning:

How do I post an Owner's Contribution to a business expense on QB
2005, without using the JE?

Thanks, Lynne
I don't think you can. Your OC account is an equity account. Make Deposits
and Write checks functions only allow you to access Asset accounts. I have
this issue with my own books when I need to pay for something out of
personal funds. I end up using a JE because I have not figured out a work
around short of calling the OC a bank account.
 
S

Shoebox Services

I don't think you can. Your OC account is an equity account. Make Deposits
and Write checks functions only allow you to access Asset accounts. I have
this issue with my own books when I need to pay for something out of
personal funds. I end up using a JE because I have not figured out a work
around short of calling the OC a bank account.
Thanks. With Simply Accounting, it can be done.
 
H

Haskel LaPort

Shoebox Services said:
Good morning:

How do I post an Owner's Contribution to a business expense on QB
2005, without using the JE?
Posting a journal entry is not a sin. You will still go to heaven.
 
H

Haskel LaPort

Laura said:
I don't think you can. Your OC account is an equity account. Make Deposits
and Write checks functions only allow you to access Asset accounts. I have
this issue with my own books when I need to pay for something out of
personal funds. I end up using a JE because I have not figured out a work
around short of calling the OC a bank account.
Whats with the issue bit? Making a journal entry is no big deal.

That said, since there is no real tax distinction between the business
(sole proprietor) and the owner it is a simple matter to create a bank
account called Owners Petty Cash. The inital large deposit can be posted to
Owners Capital. Use the new bank account to record any out-of-pocket
expenditures.
 
L

Laura

Haskel LaPort said:
Whats with the issue bit? Making a journal entry is no big deal.

That said, since there is no real tax distinction between the business
(sole proprietor) and the owner it is a simple matter to create a bank
account called Owners Petty Cash. The inital large deposit can be posted
to Owners Capital. Use the new bank account to record any out-of-pocket
expenditures.
I ended up skipping the deposit part of your suggestion and just made
accounts corresponding to my bank account and credit card so that I could
identify the funds used to pay for the business expenditures.

I agree with your other comment that a JE is not a sin. I hate the way that
Intuit ignores the fact that expenditures and/or deposits sometimes need to
be applied to non-asset accounts. I'm sure they felt it necessary to
restrict users from accessing other accounts in an attempt to keep the
number of errors small.
 
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Q

QBConsultant

I ended up skipping the deposit part of your suggestion and just made
accounts corresponding to my bank account and credit card so that I could
identify the funds used to pay for the business expenditures.

I agree with your other comment that a JE is not a sin. I hate the way that
Intuit ignores the fact that expenditures and/or deposits sometimes need to
be applied to non-asset accounts. I'm sure they felt it necessary to
restrict users from accessing other accounts in an attempt to keep the
number of errors small.- Hide quoted text -

- Show quoted text -
When you make a deposit or write a check you can select the owner's
equity account--you just have to scroll up to find it.

Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting: The Complete Guide to
Starting and Growing a QuickBooks Consulting Business
http://www.SuccessfulQuickBooksConsulting.com
http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-Starting/dp/1434810690
 
L

Laura

I ended up skipping the deposit part of your suggestion and just made
accounts corresponding to my bank account and credit card so that I could
identify the funds used to pay for the business expenditures.

I agree with your other comment that a JE is not a sin. I hate the way
that
Intuit ignores the fact that expenditures and/or deposits sometimes need
to
be applied to non-asset accounts. I'm sure they felt it necessary to
restrict users from accessing other accounts in an attempt to keep the
number of errors small.- Hide quoted text -

- Show quoted text -
When you make a deposit or write a check you can select the owner's
equity account--you just have to scroll up to find it.
Do I have a setting incorrect? In Write checks I only have "bank" accounts
to chose from and in Make deposits I only can post to Asset accounts? No
option to deposit to an Equity account such as Owner's Contribution or Owner
Draw.
 
S

Scott

Laura said:
Do I have a setting incorrect? In Write checks I only have "bank" accounts
to chose from and in Make deposits I only can post to Asset accounts? No
option to deposit to an Equity account such as Owner's Contribution or
Owner Draw.
He's referring to the other side (non-cash) of the transaction.

You could add another line to the cash transaction (check or deposit)
offsetting the expense by posting a negative amount to owner's contribution.
This would allow you to record it as a check but zero out the cash
transaction & result in correctly posting to expense & equity.
 
P

Pet - www.GymRatZ.co.uk

Shoebox said:
How do I post an Owner's Contribution to a business expense on QB
2005, without using the JE?
Right or wrong, I just enter it into the petty-cash account which will almost
always have enough cash taken through shop sales to cover.

Then any imbalance to the positive is obviously pocketed to cover the
out-of-pocket expenses through the year.

:¬)

Works for me anyway.
 
H

Haskel LaPort

Laura said:
Do I have a setting incorrect? In Write checks I only have "bank" accounts
to chose from and in Make deposits I only can post to Asset accounts? No
option to deposit to an Equity account such as Owner's Contribution or
Owner Draw.
If the Owners Pety Cash account is set up as a bank account then it will
show up when issuing checks just like any other bank account.
 
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L

Laura

Haskel LaPort said:
If the Owners Pety Cash account is set up as a bank account then it will
show up when issuing checks just like any other bank account.
I am aware of that. That is basically what I have had to do in my own
company file. I actually set up Petty cash and a checking account so that I
could distinquish exactly where the money came from so that I could cross
reference those transactions with my quicken file that contains all of my
checking account transactions.

But Michelle implied that you could write checks & make deposits that impact
an equity account and I was questioning that capability.
 
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Q

QBConsultant

I am aware of that. That is basically what I have had to do in my own
company file. I actually set up Petty cash and a checking account so that I
could distinquish exactly where the money came from so that I could cross
reference those transactions with my quicken file that contains all of my
checking account transactions.

But Michelle implied that you could write checks & make deposits that impact
an equity account and I was questioning that capability.- Hide quoted text-

- Show quoted text -
What I was referring to is when the business pays for personal
expenses of the owner--you can post it to the owner's draw account.
For items the owner paid from with his/her personal funds, I usually
enter it as a JE. Sorry if I caused confusion.

Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting: The Complete Guide to
Starting and Growing a QuickBooks Consulting Business
http://www.SuccessfulQuickBooksConsulting.com
http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-Starting/dp/1434810690
 

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