Entering an investment Follow

Equity investments are cash you receive in exchange for partial ownership of the company. There is no debt involved and no obligation to pay anything back. These investments will show up in the equity section of the balance sheet as Paid-in capital.

Note: If you have a convertible debt arrangement with an investor, that's entered differently. See Entering convertible debt.

 

Adding an investment:

  1. Click on the Forecast tab, and then click Financing:
    forecast-menubar-new-financing.png
  2. Click Add Investment:
    addinvest.png#asset:990
  3. Enter a name for the investment:
    nameinvest.png#asset:1121

  4. Choose whether this will be a one-time investment, a constant repeating amount, or varying amounts over time:
    onetimeinvest.png#asset:1128

    • If you choose One-time amount, indicate how much the investment will be and when you'll receive it:
      one-time-invest.png#asset:1692
    • If you choose Constant amount, indicate how much you'll receive per month/year and when the investment will start:
      constantinvest.png#asset:1030
    • If you choose Varying amount, indicate how much you will receive and in which months/years:
      varyinginvest.png#asset:1185
  5. Click Save & Close. The investment will appear in the Financing table under Amount received:
    financing-investment-table.png

 

Where does this entry appear in my financials?

An Investment will not appear in the Profit and Loss. In the Balance Sheet, it appears as Paid-In Capital, and the value carries forward from the date you receive the investment:

financing-investment-balancesheet.png

In the Cash Flow, the investment appears as Investments Received, with a positive cash value in any months where you received money:

 financing-investment-cashflow.png

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