Mutual Funds

by Lynn
(Salmo, BC, Canada)

What account type should I use for mutual funds within an RRSP?


I've been using Quickbooks for my home based business for a few years now, but am just starting to track my personal finances as well. I'm using Premier 2010.

My husband and I make a monthly contribution to mutual funds within an RRSP and I don't know how to track it in Quickbooks. I thought an equity account, but I just can't be sure.


Lots of great info here - I'll be back again.

Thanks..........Lynn (fellow SBI'er)

image of fancy scroll lines

Personal finances is a bit outside this website's niche but here are my thoughts:

To track your personal finances in QuickBooks, ... hopefully in a separate set of books from your business, you need to setup an "Other Asset" account.

However, QuickBooks isn't the best vehicle to track investments.

With investments, you need to track your adjusted cost base (ACB). The "book value" your mutual fund provider states on your statements may not be correct if you receive any return of capital (ROC) during the year and they are not tracking it ... not all do.

You can find out if you had any return of capital affecting your ACB by looking at your annual T3 slip. ROC will be located in box 42.

Quicken works better for tracking investments. (I'm not a fan of using Quicken for tracking your business, unless it has minimal entries.)

If you go with QuickBooks, you will need to keep an Excel spreadsheet that tracks your ACB. You will need this information for tax purposes when you sell ... and you don't want to be hunting for the information at that time, particularly if you've held your investment for years or bought and sold over time ... as opposed to one lump sum.

You also have to book the reinvested dividends/interest each month. This is a non-cash entry but affects the value of your investment. Most statements adjust for this in the "book value" reported on your statement.

Drop me a note Lynn and tell me about your SBI site! :0)

P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.

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