Making deposits in chart of accounts??

[ironlungz]

Hi,

So I just started quickbook and am an utter newb. So i open chart of accounts and select my LLC BOA account. I try to input a deposit amount and it tells me to select an account. so i select LLC BOA. Then when i try to complete the line it tell me i cannot transfer it from the same acccount.

What do i need to do to seperate it?

I tried creating another account, but then it just shows up as -7000.00 in one account and +7000.00 in the other. Im thinking that i set up the banking part wrong.

if anyone can guide me through this or help me in any way i would greatly appreciate it.

[Wartrace]

You can't name the same account you are using as the account. I am assuming the deposit to your bank account is either an investment by you into the business which means the account should be an equity account OR if it is the proceeds of a loan it would need to be the loan account.

When you Debit an asset account another account needs to be credited which is why the one account showed a positive and the other a negative.

My suggestion is to watch the QB's tutorials included in the program

[ironlungz]

Yes, you are correct. The deposit is from me to start up the business. Thanks for helping me realize I needed to apply it to an equity account. I applied it to the Opening Balance Equity and it worked out. Thanks for the help

[Wartrace]

Originally Posted by ironlungz

Yes, you are correct. The deposit is from me to start up the business. Thanks for helping me realize I needed to apply it to an equity account. I applied it to the Opening Balance Equity and it worked out. Thanks for the help

It "appeared" to work out.....

The opening balance equity account is NOT the place to record your investment in a new company. You should use an "owners investment" equity account. If you do not have one create it. You are a single owner LLC right? Just create an owners investment equity account and use that. (If you have partners you should set up individual investment accounts- easier would be use the ez-step interview and set up as a partnership)

ALMOST EVERY TIME I get a QuickBooks mess to fix people did not understand what the opening balance equity account is.

1) It should ALWAYS have a "0" balance. This is the FIRST thing I look at when I get a new file. It tells me a lot about the users knowledge of accounting & QuickBooks.

2) It is nothing but a "placeholder" for when you are setting up a new company file for and existing business with assets, liabilities,and open transactions.

3) Opening balance equity should always be closed out to retained earnings and the retained earnings account should match what was in the trial balance sheet of the previous accounting system.

[ironlungz]

ohhh i see what you mean. I created my own "Owners Investment" account and it has the exact money i put in, while the opening balance equity is $0.00.

I understand what you mean when the opening balance equity has to be $0.00. It's what tells you that your account is balanced.

this is going to be very helpful for me.

[Wartrace]

If you are just starting up you will not use the Opening Balance equity account at all.

I just had a client, she started up earlier this year. Every.Single.Thing. WAS WRONG. Do yourself a favor and watch the videos in the tutorial and buy L.Cappachetti's book "The official guide to Quickbooks". A small investment (under 20 bucks) could save you hundreds in "clean up" costs.....Although thats how I make my living so ..........