Where to add paid-in capital?

Paid Capital, often referred to as Paid-in Capital or contributed capital, is the amount of money that shareholders have invested in a company in exchange for equity. This figure is crucial for any business as it represents the funds that owners have paid into the company, not through earnings or operations, but through initial funding or subsequent capital raises.

In the balance sheet, Paid Capital is shown under shareholders' equity and reflects the stability and financial backing of the company.

Steps to add Paid Capital:

1

Log in to your account and open the 'Finance Forecasting' module.

2

In the 'Forecast' section, under the ‘Settings’ option, find and click on the 'Starting Balances' option.

3

Look for the 'Paid-in Capital' option within the Starting Balances section. Here, you can enter the amount of capital that shareholders have contributed to the company.

NOTE: After adding the Paid-in Capital, it is crucial to ensure that your assets balance with liabilities and equity.

This is not generated through earnings but is the initial or additional capital paid into the company by its owners or investors.

Paid Capital is displayed prominently on the Balance Sheet within the Equity section. Specifically, it appears under the "Paid-in Capital" subsection. This figure represents the funds that shareholders have directly invested in the company.

By following these steps, you can effectively manage and record Paid-in Capital, ensuring that your financial forecasting and reporting are both accurate and reflective of your business’s actual financial situation.