What is the Owner Funds Account?
Owner Funds is the default equity account representing your funds that are not currently tracked in the business. Equity is the value of an asset or business after subtracting all debts, and it also refers to the portion of a company that an investor owns.
For example, the Owner Funds account could apply to a personal bank account you do not have linked to REI Hub, which occasionally pays into your business accounts that are linked to your portfolio. There could also be manual transactions you need to create for cash purchases or that happened on personal cards. You can use Owner Funds as the Payment Account in these instances.
Owner Contributions
An owner contribution is when you transfer money from your personal accounts to generally fund the business. Owner contributions don't usually have a specific purpose, like repairing plumbing, but rather are more generalized to fund the business overall, like maintaining minimum balances in your bank accounts.
When booking an Owner Contribution, the system will credit Owner Funds to show that you and your personal bank accounts are the source of the funds flowing into your business.
Owner Contributions increase the balance of the Owner Funds account on the Balance Sheet. After selecting Contribution as the transaction type, select Owner Funds as the Equity Account.
Owner Distributions
Funds coming out of your business accounts and moving to your personal accounts or paying your personal expenses are considered Owner Distributions.
Owner Distributions reduce the balance of the Owner Funds account on the Balance Sheet. After selecting Owner Contribution as the transaction type, select Owner Funds as the Equity Account.
Owner Distributions and Contributions are not taxable events. Your taxable income is the same whether or not all funds have stayed in your business accounts or have been moved to personal accounts.
Business Expenses Paid from Personal Accounts
If you had a business transaction that took place in a personal bank account or on a personal credit card, you still want to mark it as an expense because it was relevant for your business's financial records. In these cases, you would use Owner Funds as the payment account to represent that the transaction took place within your personal accounts.
To add a business transaction that took place in a personal bank account, you will use the Add Transaction button in the top left corner. From there, you'll select the transaction type, enter the relevant details, and then use Owner Funds as the payment account.
Reports
You can see the Owner Funds account in a few places, but the two easiest reports to access the account would be the balance sheet and account register.
To View the Balance Sheet
1) Navigate to the Reports page and click the Balance Sheet or Balance Sheet by Property
2) Select the appropriate date and report scope
3) View, filter, and export as desired
The Balance Sheet and Balance Sheet by Property can be exported into Excel or PDF, downloaded directly to a computer, or emailed.
To View the Account Register
1) Navigate to the reports page, and click on 'Account Register' in the Other box
2) Filter by date range, transaction type, property, and account
The account register view will adjust automatically based on the set filters. For example, if the date range is set to 'This Year to Date,' the register will only show transactions and balances for the current year.
If the date range filter is updated to 'Last Month,' it will only show the transactions from last month and the balance of those transactions.
To see all the transactions and a running balance of that account and its total activity, you'll want to show a custom date range that starts with your bookkeeping start date.
Still have questions? Reach out to our Support Team via email at [email protected] or call us at (888)939-6865.