Record the money owners put into a business and take out of it, such as investments, withdrawals and dividends, with Equity accounts in finerd.
Equity accounts record the money owners put into a business and the money they take out of it, such as a starting investment, a withdrawal of profit or a dividend. In finerd, these movements go between an Equity account and the business’s bank or cash account, so they never count as the business’s income or expenses.Equity accounts exist only in business spaces, which need their own subscription after the 34-day trial. You add equity accounts and record owner transactions on the web and iOS. The Android app shows equity accounts but can’t add one or use it in a transaction. The Balance Sheet report, which totals equity, is on the web only.
An equity account isn’t money the business holds. It’s a record of what the owners have put in and taken out, so the business’s own accounts can show where their money came from.Every new business space starts with two equity accounts:
Owner Investment for money the owners put into the business.
Profit Withdrawal for profit the owners take out.
finerd names them in the language your app used when you created the space.You can add your own, for example Dividends, or one account for each partner’s investment. finerd keeps an equity account’s movements separate from income and expenses:
What happened
From
To
You put €5,000 of your own money into the business
An equity account has only a name and an icon. You don’t enter a currency or a starting balance: its total comes from the transactions you record with it.
Web
Android
iOS
Open Accounts and select Add account.
Select Equity. It’s at the end of the list and appears only in a business space.
Enter a name, for example Dividends. To change the icon, select it.
Select Save.
Equity is the last account type in a business space.
An equity account needs only a name and an icon.
The Android app can’t add an equity account. Add it on the web or iOS; it then appears in Accounts under Equity.
Open Accounts in More and tap +.
Tap Equity. It’s at the end of the list and appears only in a business space.
Enter a name, for example Dividends. To change the icon, tap it.
Tap Save. finerd confirms with … account created.
Equity is the last account type in a business space.
When you put your own money into the business, record a transaction from an equity account to the account that received the money. There’s no separate transaction type for it: start an income and change From.
Web
Android
iOS
On the Dashboard or the Transactions page, select Add transaction, then Income.
Select Skip to leave out the merchant.
Enter the amount, for example 5,000, and select Continue.
Select From. In the list that opens, open Equity and select Owner Investment or your own equity account. On the web, this list is titled Select money destination on both sides.
Check that To is the bank or cash account that received the money, and the date.
Select Save.
Equity is the last group in the list.
€5,000 from Owner Investment to the Wallet.
The Android app can’t use an equity account in a transaction: Equity isn’t in the list of accounts and categories for From and To. Record the investment on the web or iOS.
Tap +, then Income.
Tap Skip to leave out the merchant.
Enter the amount, for example 5000, and tap Continue.
Tap From. In Select money source, open Equity and tap Owner Investment or your own equity account.
Check that To is the bank or cash account that received the money, and the date.
Tap Save.
Equity is the last group in Select money source.
€5,000 from Owner Investment to the Wallet.
The money appears in the business account’s balance, and the transaction shows with a plus, like income. It doesn’t count in Expenses, Income or Profit & Loss.
When you take money out of the business, record a transaction from the business account to an equity account. Start an expense and change To.
Web
Android
iOS
On the Dashboard or the Transactions page, select Add transaction, then Expense.
Select Skip to leave out the merchant.
Enter the amount, for example 1,200, and select Continue.
Check that From is the bank or cash account the money left.
Select To. In Select money destination, open Equity and select Profit Withdrawal, or your dividends account.
Select Save.
The Android app can’t use an equity account in a transaction. Record the withdrawal on the web or iOS.
Tap +, then Expense.
Tap Skip to leave out the merchant.
Enter the amount, for example 1200, and tap Continue.
Check that From is the bank or cash account the money left.
Tap To. In Select money destination, open Equity and tap Profit Withdrawal, or your dividends account.
Tap Save.
The same Equity group appears in Select money destination.
€1,200 from the Wallet to Profit Withdrawal.
The money leaves the business account’s balance, but it isn’t an expense: the business’s Expenses and Profit & Loss don’t change.If the money went from the business account to your own account in your Personal space, record the income there separately; finerd doesn’t copy owner withdrawals between spaces.
An equity account doesn’t have a balance you set or verify, and Accounts doesn’t show a running total for it: the web shows a dash and iOS shows 0. To see its movements:
Open the account to see its latest transactions, and select Show turnovers in its menu for the total over a period. Turnovers shows money put in with a minus: in bookkeeping, equity sits on the opposite side from the money the business holds.
On the web, open the Balance Sheet report, which totals equity as a positive amount; see Equity in reports.
Web
Android
iOS
Open Accounts, select the equity account, then the ⋮ menu and Show turnovers.
Accounts on the web: equity accounts have their own group, with no amounts.
Open Accounts in More and tap the equity account. Its menu has Turnovers.
Open Accounts in More, tap the equity account, then the ⋮ menu and Show turnovers.
Turnovers of Owner Investment after the €5,000 investment.
Owner transactions move money without earning or spending it, so finerd keeps them out of the reports about the business’s results:
Report
How equity shows
Expenses, Income, Profit & Loss
Not included. Profit & Loss counts only income and expense categories.
Cash Flow
Under Other: an investment is a cash inflow, a withdrawal or dividend an outflow.
Balance Sheet (web)
Under Total Equity, next to Total Assets and Total Liabilities. Money put in counts as positive equity, withdrawals as negative. Accumulated profit adds up the business’s income and expenses to date.
For example, after a €5,000 investment, a €1,200 withdrawal and €40 of expenses, Cash Flow shows €5,000 in and €1,200 out under Other, and Profit & Loss shows only the €40 of expenses. Balance Sheet shows Owner Investment €5,000 and Profit Withdrawal −€1,200 under Equity, Accumulated profit −€40, and Total Equity €3,760: the €3,800 left in the business minus the €40 it owes.
Web
Android
iOS
Open Reports. Profit & Loss and Balance Sheet are with the other reports in a business space. In Balance Sheet, select the arrow next to Equity to see each equity account.
Balance Sheet: money put in and taken out under Total Equity.
The Android app doesn’t have Profit & Loss or Balance Sheet. Open them on the web.
Open Reports. iOS has Profit & Loss and Cash Flow, but not Balance Sheet.
Cash Flow: the investment and the withdrawal are under Other.
Profit & Loss and Balance Sheet are available to the Owner, Admin and Accountant roles, and to other members you give access to them; see Choose a role. To read them, see View business reports.
You can rename an equity account, change its icon, archive it or delete it, including Owner Investment and Profit Withdrawal. You can’t change its type.
Archive hides the account and keeps its transactions.
Delete removes the account and all its transactions, and can’t be undone. Archive an account you no longer use instead, so past investments stay in your reports.
Web
Android
iOS
Open Accounts and select the account. To rename it, select the name, type a new one and select Save. The ⋮ menu has Show turnovers, Import transactions, Meta data, Archive, Delete and Contact support.
The menu of an equity account on the web.
Open Accounts in More and tap the equity account. To rename it, tap the name, type a new one and tap Save. Archive and Delete are in its menu.
Open Accounts in More and tap the account. To rename it, tap the name, type a new one and tap Save. The ⋮ menu has Show turnovers, Metadata, Archive, Delete and Contact support.
