 QuickBooks desktop 2023 record investment. Let's do it within two weeks. QuickBooks desktop 2023 Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website Broken out by category further broken out by course each course then organized in a logical Reasonable fashion making it much more easy to find what you need then can be done on a YouTube page We also include added resources such as excel practice problems PDF files and more like QuickBooks backup files when applicable So once again click the link below for a free month membership to our website and all the content on it Here we are in QuickBooks desktop get great guitars practice file We started up in a prior presentation going through the setup process We do every time Maximize in the home page to the gray area in the view drop down We got the hide icon bar open windows list open open windows open on the left hand side Going to the reports drop down. Let's open up the major two Profit and laws in the company and financial P&L. There's nothing in it yet, but let's just keep it open Oh one oh one two three two twelve thirty one Two three, so we're working in the year of 2023 for the practice problem reports drop down again company and financial this time the big balance sheet Let's customize it first and then do the range in changing a one oh one two three two twelve thirty one two three January to December. Let's go to the fonts and numbers as well and change it to twelve Okay, yes, and okay now in prior presentations We have imagined that we had a prior accounting system set up But then we started the QuickBooks software and we wanted to transfer over the beginning balances Into the QuickBooks software as of the last date of the prior system, which was twelve thirty one two two 22 and then we're starting to enter current year information starting January 1st 2023 now even though we already had some beginning numbers in there to start with we then wanted to take a look at some Transactions that would be typical if you were starting a new business Those would be transactions that are not always there when you do continuing business. They're not the normal day to day transactions They're more unique Transactions that are there when you start the business and possibly when you increase the size of the business and that's going to be us Funding the capital so if we're going to be funding the capital investments or funding the investments in things like property Plants and equipment that we're going to then use to generate revenue the startup capital that is needed We might get that from us the owner So we then deposited money into the checking account or we might get a loan So we took out a loan increase in the checking account the other side either go into a liability for the loan payable or To the equity if we are the ones that are funding the business from our personal investments Once we have the money then we're going to use that to buy the property planting equipment that we're going to need to do Whatever we're going to do in this case. We're going to be selling guitars. We might need like a store We're going to need furniture. We're going to need the Inventory so that we can go and start from our business. However, we got a substantial amount of cash here So we're first going to think about Investing some of that cash into a short-term investment while we're holding on to it before we then invest in anything else Something like stocks and bonds that might give us a return for dividends interest and possibly you know gains from the stocks So when we do this transaction note that the business itself is not in the business of Investment income generating stocks and bonds. We're just parking up some of our money there for the short term Most types of businesses unless you're in the financial industries area are going to be like that, right? We're not in the business of investing But we might use some investments to park our money in the short term If we have a lot of money left if we have a lot of money part possibly due to us doing good business We're generating revenue We're increasing the value of the company and we have a lot of money and we don't have any need to reinvest that money in Property plants and equipment building and so on then we would want to distribute that money Generally to the owners in this case the sole proprietors in a draw for a corporation We would give it back to the owners and the form of a dividend because the whole purpose of it having it under the Umbrella of the business is that we're using it for the business purpose to generate revenue Which would be higher returns than you could get elsewhere if we're not using that capital that cash to do that within the business then we can give it to the owners and they can then invest in you know the the investments of of stocks and bonds so The so what I'm trying to point out is we wouldn't normally want our personal investments in the stocks and bonds perhaps in our business account We would only want it there if it was a short term thing Otherwise, we would probably distribute it the money to us the individual and then invest on the individual side Okay, but that's what we're gonna do. We're gonna take some of this money We're gonna put it into an investment imagining it being something like the stocks and bonds if I go to the homepage This is another transaction, which is not know part of our normal business operations Doesn't have anything to do with the customers doesn't have anything to do with the vendors and therefore there's no really set form that is designed Specifically for it. So when we go through our thought processes for entering data into the system Note that there's a double entry accounting system Usually we want to use the forms if we can to do a transaction if that transaction is one that occurs often in the Normal accounting cycle if there is no form for the transaction We might then ask is cash affected if cash is affected then possibly I want to use the Register that might be the easiest thing to do or use a check or deposit form if cash is not affected and there's no Transaction here or form to use then I would use a journal entry or a register entry So that's kind of the thought process you would go through when entering the transactions first use a form Which is the most common thing for most day-to-day transactions if that's not there is cash affected if it is Possibly use the register if that's not there then we might use the registers or a journal entry in that case So we're gonna be we're gonna be having cash affected here So we could use the registers In order to record the transaction so I'm go to the register here or I can go to the list drop down and The chart of accounts and I'm just gonna double-click on the checking account So and then I'm gonna say this happens as of let's say one Let's say one four say oh one oh four two three and I'm gonna say this is I'm gonna delete the number because this is not a check So we have no check number. I'm gonna say that we're gonna be going to Vanguard Then that's gonna be our investment and we'll set it up So I'm gonna say a quick setup. So we're gonna invest with Vanguard We're imagining in something like mutual funds or something like that. It's not a vendor or a customer So once again, we have that other category that we'll choose. We're gonna say 12,000 so we're gonna take 12,000 out of the checking account and put it into a Vanguard account Which is gonna be an other asset account It's not cash, but it's something that can fairly easily be transferred to cash Although there's more risk with the money in something like a Vanguard account if and depending on the type of investment Is it a mutual fund? Are we investing in bonds stocks or is it is it like a? Holding account for mutual a securities account of some other sort But in any case we'll hit the drop-down and say do we have an Investment account here from the chart of accounts provided to us by QuickBooks. It would be some kind of other asset Inventory no so we don't have one. So I'm gonna set one up I can do that by hitting the drop-down and saying new but I usually just type in here what I want first I usually do this short and I'm gonna say term Investment hopefully I spelled that right and then I say tab and then it asks me if I want to set it up I'm gonna say yes, let's set it up and it's not gonna be an expense account It's gonna be an an asset account. So I'm gonna say it's other current asset. It's not a bank account It's not an accounts receivable. It is gonna be current assets because it's fairly liquid We can transfer it to cash fairly shortly and and we're not planning on holding on to it for a long period of time That's basically all we need. Let's save it. Let's close it and this is gonna be in investment in the memo let's say it's just a memo and Okay, so there we have it. Let's see what happens to the reports go into the balance sheet and If I double-click on the checking account double-click in the checking account We've got our Vanguard investments 12,000 coming out here. So that looks good notice it opens up to a check Form because that's the form that is used for a decrease to the checking account We didn't necessarily write a check. We might have done an electronic transfer We have no check number representing that but this form is the form that's gonna be used for a decrease of the checking account Even though we entered the data into the register and then the other side went into this Where did it go into the asset inventory short-term investment right here double clicking on that? So there is our investment once again. No impact on the income statement Now there's a couple things we just want to point out if you have investments here And there's similar kind of problems You could use QuickBooks to track your personal investments as well or at least to record your personal investments Although QuickBooks is not the kind of software that you're gonna want to be to be you know running graphs and do your day-to-day calculations in terms of investment decision-making processes giving you the real-time data on a day-to-day basis QuickBooks is the type of software where you might want to update it periodically So you might want to group your investments in QuickBooks periodically and then make adjustments on a monthly basis or a quarterly basis as you get the statements and make those adjustments marking it up to possibly market value if you're investing in something like stocks now There's a couple problems with that. However, when you when you start to say, okay, I've got my My asset in place. What am I gonna do? If there's a change in value How am I gonna how am I gonna deal that with that? How am I gonna record it and it's a little bit different then Depending on the type of asset because if you have the fixed assets down here if I invest in something like a building Then typically we keep the building on the books at cost and we don't we don't really adjust the building most of the time Because we don't really know what the market value of the building is So this is part of the rationale at least until you actually sell it because a building is unique You can get an appraisal you could try to find the value of the building But you don't really know what it is So it's a lot more difficult to try to get the real-time value of the building if you're investing in a publicly traded Exchange for stocks and bonds then you can get a pretty good idea of what the real-time value is of those stocks and bonds They'll fluctuate a lot but you can get an idea where wherever it is selling at any point in time because Other stocks and bonds are the exact same stocks and bonds. They're the same unit amount They're not unique in nature and they're selling all the time So we can get a pretty good feel for what the value is at any given time Therefore the argument would be as time changes You're probably going to say well I want to change my short-term investment and market up or down to the current fair market value to do that You might do that in the same account here So you might invest 12,000 in every month you look at the statement and then you can say okay if it went up to 12,500 then you can write it up to 12,500 here and then the question is well What do you do with the other side of the transaction and the other side the options you have? The easiest thing to do is put it on the income statement as some kind of of income account now in our case It's not our main income. We're not in the business of just financial investments. Therefore. I wouldn't put it in the primary income I would call it other income which would be on the bottom of the income statement to show it as income But not part of our normal operations It's not what our main thing is to make money The other option that you could do is you can put it into an equity account down here So it doesn't hit the income statement at all because you haven't realized the actual game So you could have an equity account that would have The income I will get into the general the generally accepted accounting principles on it So you can look at you know the gap what you should do in terms of generally accepted accounting principles But these are the two kind of concepts putting it in equity Usually is a little bit more confusing if you don't have like an accounting background with it but you but the idea there would be that you would have the the The amount of the difference gain or loss and the other side over here into an equity and they would kind of They would cancel each other out in essence because you haven't actually realized the gain by selling the the actual stocks now you also might create another account here that would represent the gains and losses so you might say this is my 12,000 investment you might create another account that shows the gains and losses so you can kind of track the difference in Another account in that other account. You might make it a a subsidiary account to track those increases and decreases Another thing I just want to kind of point out when you do these types of investments is that you might have investments in Multiple mutual funds for example and the question then would be do I want to have a whole bunch of different? Mutual funds on my QuickBooks account Or do I want to have fewer mutual funds and I would argue usually you would want fewer mutual funds on Your your QuickBooks account so that you can tie into the statements as a total amount Right because if you have a bunch of different mutual fund accounts here or whatever your investments are Then you're gonna have to adjust them all individually within QuickBooks and QuickBooks isn't really the area where you want to get into the detail Because you want to get the summary of where you stand in QuickBooks generally and then the detail You can find in the other reports possibly on the vanguard website to give you the detail of the day-to-day Activities or you can get more advanced software to track, you know the dig down on the detail So you probably don't want as much detail in the QuickBooks However, you might have some investments if they were personal investments that are under the umbrella of like an IRA for example So you might that's one way you could break things out You could say well if it's not under the umbrella of an IRA or 401k plan Maybe I put that in the short-term investments And if they are under the umbrella of an IRA or something like that I can't pull them out as easily Maybe I make them an other asset not a current asset, but an other asset That's another way that you can break it out You can also think about breaking them out if you have investments in bond funds versus stock funds Then you might break out and say these these are my bond investments and these are my investments In stocks for example, but oftentimes you could also have Mutual funds that are in both stocks and bonds which kind of messes up that that kind of system But those are just a couple things to keep in mind They're not as big of an issue for most like so proprietor type of businesses Because you're not going to have a lot of your investments in your company file But again, you could use QuickBooks for your personal investments And so so that can become more relevant more, you know, the question of how much detail you want On the investment can become more relevant in those cases Okay, so also note in the future the income that would result from this could be in the form of Dividends if we're investing in corporate stocks, which means that we could record the increases in dividends Which would be income in the profit and loss which again I would make in an other income account not the normal income account We could have interest if it was bonds in the form of interest So we get we would have interest income and we could have the value of the stock going up And when the value of the stock goes up, that's when you have that Unrealized gain because you haven't yet sold the stock the stock could go back down at any given time But you're pretty confident of what the value is at that time Because other sought stocks and bonds which are the same in nature if you're Investing in publicly traded stocks are trading at that time for the same price Okay, so that that is going to be that one next time. We'll go into some purchasing of some fixed assets