Starting business figures

You can either put it down as Equity - Share Capital, or you can put it as Long term Liability - Due to Shareholder.

If the business is not incorporated, it is just Owner's Equity - I usually use an a Equity account called something like "Owner's Contributions / Withdrawals".

Perhaps Glenn should talk to his accountant about this and other matters.

"Tom Moreau" wrote ...

Debit Cash or the bank account where you're keeping the money. Credit Owner's Equity. Go to Amazon.com, buy basic accounting book, also buy Quickbooks, The Missing Manual. Everyone will suggest hiring an accountant but many small sole proprietorships can't afford one. It isn't rocket science but you do have to spend some time learning it. And, in the future, if you ever do have an accountant, it'll be nice to know what he or she is talking about.

Bob

Congratulations you are the 10,000th person to ask this question.

Honest-to-God, go to your local community college and take Bookkeeping 101. Only then can phrases such as "Amatorization of leashold improvements" and "Double-declining balance," trip off your tongue like a pro.

Eight-to-five his next question is "What's a debit/credit?"

Didn't think of that. I already bought the books from Amazon.com. Yeah, maybe he does need an accountant.

Bob

'Can't afford' is a misnomer, and a bad excuse. When a small business owner says s/he 'can't afford' necessary advice, what they *really* are saying is that they have set a higher priority on other spending. There are costs associated with starting a business, and you need to include them in your startup budget. One of the costs you budget for dang well better be learning how to keep your books! IMHO if the business 'can't afford' a SINGLE visit to an accountant, for answering basic setup questions, then the business will surely fail.

My startup budget was $50 and it went into teaching supplies. I don't know any accountant who will even begin to say good morning for 2 or 3 times that amount. Contrary to your doom and gloom outlook, after 3 years, my business is quite successful, my books are in order, my taxes are correct, and I have money in my pocket. Sure, accounting takes some effort, but in the beginning I had much more time than money so I studied the free education sites online, later bought a book or two, then bought financial software.

Bob

Thanks to those who actually gave me an answer. This was something I forgot to ask my accountant so just used the news group for a quick answer.

Shame on the rest of you