I received money as a loan from a family member as seed funding. I initially deposited it into my personal account and used a portion before opening my business account. I then transferred the remaining balance into the business account once my business account was opened. How do I account for the funds spent while in my personal account as a business? I don’t want to add my personal account into QB and I’m not sure if I can add the full amount as a deposit into my business account because it does not reflect that on the bank statement. It’s already recorded as a loan from the family member but I don’t know how to record the deposit of full funds. Here’s what I’ve done: All of the funds that were used from my personal account are recorded as “Other current liability / Loan from Shareholder” I’ve used the “Opening Balance Equity” account to initially record the full amount loaned to me while also posting this full amount as a “Long term liability” to the person who loaned it to me. I’ve transferred the amount already previously spent from “Opening Balance Equity” to “Other current liability / Loan from Shareholder” paying off the loan I’ve transferred the remaining balance from “Opening Balance Equity” to the business checking account bringing the “Opening Balance Equity” to a zero balance.

QB Issue Resolution:

Shareholder – have you elected to be taxed as an s-corp or form a c-corporation?

You should have create a bank type account for checking as well as cash on hand

there are several ways to do this, I prefer

1. the amount you spent before establishing the real bank account, deposit that amount to the cash type bank account and use the loan account as the source (from) account for the deposit.  Then use write checks, do not print, on the cash account to record the expenses you already paid.  (write checks is a data entry form)

2. the balance of the loan is deposited in the bank checking account, and use the loan account as the source (from) account for the deposit.

Delete all the entries you made in opening balance equity. that account does not apply in this situation

Resolution for Issue 'I received money as a loan from a family member as seed funding. I initially deposited it into my personal account and used a portion before opening my business account. I then transferred the remaining balance into the business account once my business account was opened. How do I account for the funds spent while in my personal account as a business? I don’t want to add my personal account into QB and I’m not sure if I can add the full amount as a deposit into my business account because it does not reflect that on the bank statement. It’s already recorded as a loan from the family member but I don’t know how to record the deposit of full funds. Here’s what I’ve done: All of the funds that were used from my personal account are recorded as “Other current liability / Loan from Shareholder” I’ve used the “Opening Balance Equity” account to initially record the full amount loaned to me while also posting this full amount as a “Long term liability” to the person who loaned it to me. I’ve transferred the amount already previously spent from “Opening Balance Equity” to “Other current liability / Loan from Shareholder” paying off the loan I’ve transferred the remaining balance from “Opening Balance Equity” to the business checking account bringing the “Opening Balance Equity” to a zero balance.' available: Yes (Solved).
Source: Intuit Community forum.

I received money as a loan from a family member as seed funding. I initially deposited it into my personal account and used a portion before opening my business account. I then transferred the remaining balance into the business account once my business account was opened. How do I account for the funds spent while in my personal account as a business? I don’t want to add my personal account into QB and I’m not sure if I can add the full amount as a deposit into my business account because it does not reflect that on the bank statement. It’s already recorded as a loan from the family member but I don’t know how to record the deposit of full funds. Here’s what I’ve done: All of the funds that were used from my personal account are recorded as “Other current liability / Loan from Shareholder” I’ve used the “Opening Balance Equity” account to initially record the full amount loaned to me while also posting this full amount as a “Long term liability” to the person who loaned it to me. I’ve transferred the amount already previously spent from “Opening Balance Equity” to “Other current liability / Loan from Shareholder” paying off the loan I’ve transferred the remaining balance from “Opening Balance Equity” to the business checking account bringing the “Opening Balance Equity” to a zero balance.: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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