Business / Accounting Help!!

[LERecords]

soo.. I have started a sole proprietorship!!! Filled out the forms and I am now a business owner in CT!! yay!! but i have a really simple (simple for accountants and lawyers) question about initial cash.. i plan to take some of my savings, lets say $2000 and put it into a business checking account. how do i record this as not an income transaction as this is not a sale, but the initial funding? what about in the future when i want to add some of my savings into the business checking?

i am using quicken home and business as my "books". any help would be appreciated as i feel the biggest thing holding people back from starting their own business's is these small questions that boggle the mind!!! :thumbup:

 

[motojoe122]

Congrats on the new business!
I cant help you with the accounting part tho

 

[Mudkipz137]

It's known as a... hold on let me open quickbooks, I remember it.

It's essentially categorized as "Equity". QuickBooks gives you the ability to put it into 'Contribution' category, basically saying it's money you LOANED the company to start out--not income made from the company.

However, I'm no accountant and hate doing the books, for my business we talked to a friend who does accounting professionally and are going to just pay her a couple hundred dollars a month to manage it for us. I got confused way too quick

Hope it helps a bit

Mud

 

[LERecords]

i saw that. but im not loaning the company as i am not an llc or a corporation.. a sole proprietorship has something different i believe and hopefully someone on here can shed some light on it!!

 

[Mudkipz137]

i saw that. but im not loaning the company as i am not an llc or a corporation.. a sole proprietorship has something different i believe and hopefully someone on here can shed some light on it!!

My business is a sole prop as well. It's just a way of putting it in so it's not tracked as income, it doesn't mean you're charging yourself interest or anything.

My recommendation would be to go find a QuickBooks trainer, and invest a few hundred dollars to be trained in it. Even if it's not a comprehensive training, it will help you immensely.

Good luck.