I started a business bank account (Corp C). I made an initial transfer of cash from my personal checking account to the business checking account.
How do I properly record transfers from my personal accounts to the business checking account?
I recorded the initial cash transfer as Opening Balance Equity. Is this correct? How do I record future transfers?
This in some aspects is a question for your tax advisor.. depending on how they like to report busines investments, a portion can go to equity and the rest to an officer loan ( for repayment)
but i would enter as a deposit and code it to owners equity ( not opening balance equity) for the amount of the investment you wish to be counted toward your equity.. the amount you wish to be repaid back down the road you can put to officer Loan payable account ( which you may have to set up on your chart of accounts as a liability acct)
future transfers would be handled the same way.. again i would run this past your tax advisor because sometimes basis issues come into plan and you may need more or less in your equity account.
I have one more question. When I do this, the "type" is put as TRANSFR, not DEP.
Is this correct?
