How to Enter a K-1 into QuickBooks for Your Small Business

Apr 3, 2024 3:15:00 PM Kathy Dise Small Business, Financial Management, Bookkeeping, small business bookkeeping, Quickbooks Bookkeepers, Virtual Bookkeeping Services, Quickbooks Set Up Services, K1

If you receive a K-1 for an investment owned by your small business, use these simple instructions when filing your taxes.

Filing your K-1 will adjust your Investment Account (Long-Term Asset) in QuickBooks to reflect the net income and any of the other items on the form.

When you’re finished, the amount in the Investment Account will equal the Ending Capital reported on the K-1. Interest, dividends, and expenses that impact the gain or loss on an investment are reflected on the K-1. Record them by offsetting to Gain or Loss on the Investment Account.

If you need assistance with the bookkeeping for your small business, give us a call at 216-333-1303.

Written by Kathy Dise

Kathy has over 30 years experience helping small businesses succeed. As a commercial lender, commercialization expert and now as a QuickBooks diamond level advisor, Kathy understands the challenges small business owners face. Her experience helps business owners quickly accomplish their financial goals. As the owner of BudgetEase, Kathy works with clients to develop a plan to efficiently process 1,000s of small transactions so owners can make informed decisions. She lives in Shaker Heights, OH with her husband Ralph and enjoys golf, curling and walking in Cleveland’s fabulous Metro Parks.