When you start a business one the first things you will do is open a business checking account. When you open the checking account you will have to immediately deposit money into the account. This is an equity investment; you are making an investment in your company. If your company becomes profitable you may want to get the money back by making an equity withdrawal.
For equity investments enter a positive amount. Equity investments will increase the Owners Equity and Cash Accounts by the amount entered.
For equity withdrawals enter a negative amount. Equity withdrawals will decrease the Owners Equity and Cash Accounts by the amount entered.
Equity investments can be made by anyone you allow. For instance you might be able to obtain venture capital from a venture capitalist. The venture capitalist will be an equity investor, if you agree to allow them to own part of the company. If the venture capitalist is charging you interest and wants the money back then this is considered a loan (and not an equity investment).
Beginning Balance
The beginning balance is taken from the amount that was entered on the beginning balance sheet.
If you want to change the amount go the Beginning Balance Sheet page.