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Is there a way to record a deposit as a Capital addition to a new business rather than income?

Is there a way to record a deposit as a Capital addition to a new business rather than income?

Comments

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Quicken certainly doesn't have any concept associated with typical business "equity" classifications like Common stock at par value, Retained earnings, Additional paid-in capital. etc.  Being a "personal" accounting product the "equity" is called "Net Worth" and as far as I can see is calculated on the fly as Assets - Liabilities.

    That said, there is a way to directly change Net Worth without crediting some income Account.  Simply record the deposit in the bank Account with the offsetting Category being the same Account into which you made the deposit, e.g., [Checking Account at BofA].

  • Scooterlam
    Scooterlam SuperUser ✭✭✭✭✭
    Assuming that your business is a LLC or sole proprietor....When I established my LLC, I capitalized the business by transferring operating cash from a personal checking account to my business account.  So....the business account's "category" (or transfer-in) in Quicken was my [personal account].  There was no tax line item assigned to that [personal account] category.  No tax line, no reporting as income.  Go to Tools>Category List and see your cats and associate tax lines (if any).

    Whether right or wrong, I do show, in my business budget, the capitalization as "income" along with any other 1099 MISC income from clients.

    A good question...Hope others can contribute.

    Scott
    2019 QW HBR
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