How do I record unbilled member contributions in QuickBooks Online?

In QuickBooks Online, an unbilled member contribution is recorded against an equity account, not as income and not as a bill. Money a member puts into the company is capital, so it belongs on the balance sheet rather than the profit and loss statement.

A contribution is cash or property a member adds without billing the company and without expecting repayment. It is common in LLCs, where owners top up the business from personal funds at start-up or during a slow stretch.

Set up the equity account

Create the account before you record the first contribution. QuickBooks Online usually includes a generic owner’s equity account in its default chart of accounts, but a dedicated contribution account keeps the totals clear.

1. Select the Settings gear icon.
2. Select Chart of Accounts, then New.
3. Under Account Type, select Equity.
4. Under Detail Type, select Owner’s Equity, or Partner’s Equity where that fits your structure.
5. Name the account something clear, such as Member Contributions.
6. Select Save and close.

In a multi-member LLC, add a subaccount for each member under this account. Each member’s totals then stay visible, and the parent account shows the combined balance.

Record a cash contribution

When the money lands in the business bank account, a bank deposit records both sides at once. The deposit raises the bank balance and the equity balance together.

1. Select + New, then Bank Deposit.
2. At the top of the form, choose the account the money arrived in.
3. In the Add funds to this deposit section, set Received from to the member’s name.
4. Set Account to the contribution account you created.
5. Enter the amount, add a memo such as “capital contribution”, then select Save and close.

Is it a contribution or a loan?

The test is repayment. If the member expects the company to pay the money back, it is a loan and belongs in a liability account, not equity.

Record a loan the same way, but post the deposit to a liability account such as Member Loans Payable. Repayment terms live outside the books, usually in a short written agreement.

A contribution, by contrast, permanently increases the member’s stake in the company. It never appears on the profit and loss statement.

Record a non-cash contribution

Members sometimes contribute equipment, a vehicle, or payment of a company bill from personal funds. No deposit exists in these cases, so record the entry as a journal instead.

1. Select + New, then Journal.
2. Debit the asset or expense account the contribution covers, such as Equipment or the bill the member paid.
3. Credit the Member Contributions equity account for the same amount.
4. Enter the member’s name in the Name column if you track members separately, then save the entry.

A journal entry bypasses the bank feed, so nothing will be waiting to match. That is correct here, because no money moved through the bank.

A contribution is not income

Capital contributions are not revenue, so they are not taxed as income when they arrive. How a contribution affects each member’s taxes depends on how the LLC is taxed, and that part is a question for the member’s accountant.

The equity balance grows with each contribution and shrinks when members take draws. Keeping contributions, draws, and loans in separate accounts keeps that history readable at year end.