How do we set up accounts for Owner Equity?

Question

I need to setup accounts for Owner Equity for when add money to the company and when we wthdraw money from the company.

Tom Young · Answer

To amplify @Greg_the_Geek 's correct answer,  just as you don't record transfers from your Savings Account to your Checking Account as a form of income or expense, you take the same approach with your business' Checking Account.  It's all "your" money that you move around as you wish, and it's all "your" income and expenses, whether it comes in a paycheck or in the form of business profits and losses.Quicken has no overt "equity" Accounts you can access.   If you want that feature (sort of) but still want to use Quicken then I'd advise keeping the business' activity in a separate file and using offsetting balance sheet Accounts in the two files to record transfers between your personal file and the business file.

Greg_the_Geek · Answer

I believe it's just a transfer which doesn't use a category.

6x13 Wood Working · Answer

Understood, Adding money is not income and removing is not an expense.  There has to be a category that does not effective income or expense.