Owner Contributes

I don't think you can. Your OC account is an equity account. Make Deposits and Write checks functions only allow you to access Asset accounts. I have this issue with my own books when I need to pay for something out of personal funds. I end up using a JE because I have not figured out a work around short of calling the OC a bank account.

Thanks. With Simply Accounting, it can be done.

Posting a journal entry is not a sin. You will still go to heaven.

Whats with the issue bit? Making a journal entry is no big deal.

That said, since there is no real tax distinction between the business (sole proprietor) and the owner it is a simple matter to create a bank account called Owners Petty Cash. The inital large deposit can be posted to Owners Capital. Use the new bank account to record any out-of-pocket expenditures.

I ended up skipping the deposit part of your suggestion and just made accounts corresponding to my bank account and credit card so that I could identify the funds used to pay for the business expenditures.

I agree with your other comment that a JE is not a sin. I hate the way that Intuit ignores the fact that expenditures and/or deposits sometimes need to be applied to non-asset accounts. I'm sure they felt it necessary to restrict users from accessing other accounts in an attempt to keep the number of errors small.

When you make a deposit or write a check you can select the owner's equity account--you just have to scroll up to find it.

Michelle L. Long, CPA, MBA Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business

Do I have a setting incorrect? In Write checks I only have "bank" accounts to chose from and in Make deposits I only can post to Asset accounts? No option to deposit to an Equity account such as Owner's Contribution or Owner Draw.

He's referring to the other side (non-cash) of the transaction.

You could add another line to the cash transaction (check or deposit) offsetting the expense by posting a negative amount to owner's contribution. This would allow you to record it as a check but zero out the cash transaction & result in correctly posting to expense & equity.

Right or wrong, I just enter it into the petty-cash account which will almost always have enough cash taken through shop sales to cover.

Then any imbalance to the positive is obviously pocketed to cover the out-of-pocket expenses through the year.

:¬)

Works for me anyway.

If the Owners Pety Cash account is set up as a bank account then it will show up when issuing checks just like any other bank account.

I am aware of that. That is basically what I have had to do in my own company file. I actually set up Petty cash and a checking account so that I could distinquish exactly where the money came from so that I could cross reference those transactions with my quicken file that contains all of my checking account transactions.

But Michelle implied that you could write checks & make deposits that impact an equity account and I was questioning that capability.

What I was referring to is when the business pays for personal expenses of the owner--you can post it to the owner's draw account. For items the owner paid from with his/her personal funds, I usually enter it as a JE. Sorry if I caused confusion.

Michelle L. Long, CPA, MBA Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business