How to Track Owner Equity in QuickBooks 2017

Track Owner Equity in QuickBooks 2017

It is of utmost importance for people who transact business and purchase stocks to maintain a proper register of the invested money. This greatly helps them to advance their business prospects.

Track owner equity in Quickbooks 2017 is the preferred option in the online platform. Quickbooks features a Chart of accounts which when properly utilized by a shareholder for forming an account becomes his/her most useful tool.

The Importance of Tracking using Quickbooks:

The need of maintaining a proper record of capital investments is important in an ever-growing stock market, where innumerable transactions take place every day. However, Quickbooks eases that job, as it allows clients to keep all the financial transactions at their fingertips for their review & for any external scrutiny.

Quickbooks can generate reports which include all the financial data in a very easy-to-read format. You can easily track Owner Equity in QuickBooks 2017. This report can serve as a reference guide for shares and equities that one possesses and display the performance and growth of the shares.

The foundation and progress of one’s business will determine the approach required for plotting the equity shares one possesses.

Options to track owner equity in Quickbooks 2017

Depending on the business of the client Quickbooks provides tailor-made options, well suited for any client. Depending on the percentage of ownership in a particular investment, Quickbooks offers the following options of track owner’s equity in Quickbooks 2017:

• Single Proprietorship: In the case of a single owner the task of tracking equity is quite trouble-free. For lone proprietorship, QuickBooks provides clients with an individual account having all the necessary settings. The salient features of this option are as follows;
• This account can contain a record of investments by a client through various transactions.
• The client can customize the default name of the account as per his requirement
• For accurate tracking, money used for business might be included in a new and separate account
• In Partnerships: In partnerships where two or more people are involved, Quickbooks provides the provision for setting up three financial accounts per partner. The steps followed in a partnership are enlisted below
• The three different accounts fulfill different purposes.
• The first account consists of the data related to the investment made by a partner
• The second account records the funds debited from the same partner’s account. It tracks the withdrawals of an individual partner in a partnership.
• The share of profits is credited to the third account. This account comprises the individual partner’s share of the capital gains.
• In Corporations: The process of keeping track of individual equities within a corporation might seem challenging, but, Quickbooks is well modified to aid clients to deal with such situations effortlessly.

Steps to record the owner’s capital in QuickBooks

1. First of all, open QuickBooks Accounting Software
2. Now, the main menu is at the top of the screen. Select the banking option.
3. From the drop-down menu, click on Make Deposit. Here, QuickBooks shows the Payments to Deposit window. Select the investment & payment check and then select the OK button.
4. Alternatively, you can select the cancel button and the investment check will be deposited.
5. Now, select the company’s bank account to deposit the investment. Click on the Make Deposit windows
6. Type co-owner’s name or your name or whoever is doing investment for you.
7. Here, you will see the amount input inbox, and enter the investment amount.
8. Now, from the drop-down list, click on the From button and then click on the equity amount of the owner (Or you can select from the available accounts)
9. Now, record the transaction. Select the Save & Close button and then close the window.

Summary: Tracking Equity is easier with the effective tools of Quickbooks for its huge user base. Therefore all shares and their profit either singly owned or not can be viewed from time to time. However, in the case of any inadvertent problems which doesn’t resolve on their own, the keen and methodical experts QuickBooks Team are happy to resolve your issues.

Source: 99accounting