ACCOUNTING 101: I’ve Got Stocks and Investments… Now What?

You finally did it. You opened that brokerage account, bought some stocks, maybe dipped your toe into ETFs or even threw a little crypto in there like seasoning on abuelita’s arroz. Now you’re looking at your books like, “Uhhh… what do I do with this?”

“Now you’re looking at your books like, “Uhhh… what do I do with this?"”

First of all—congrats, for real. You’ve officially gone from “saving” to “investing,” and that’s a grown move. But here’s the catch, if you are not tracking those investments in your bookkeeping, then you’re just guessing at your financial picture. That’s a no from us.. Your books deserve better. Let’s break this down and get your assets in line—literally.

What Is a Stock? What Counts as an Investment?

In order to not assume everyone’s rolling in Wall Street knowledge, let's start with the basics:

Stock: A stock is basically a tiny piece of ownership in a company. You buy a share, you own a piece. If that company grows, so does your investment (in theory). If it tanks—well, you learn a valuable life lesson.

Investment: This is broader. Stocks are investments, but so are bonds, ETFs, real estate, retirement accounts, and even cryptocurrency. If your money is parked somewhere with the goal of making more money, congrats—you’re investing.

Now that you are clear on what these terms mean, let’s get into what the heck you are supposed to do with this stuff.

How to Add Stocks & Investments to Your Bookkeeping

Your investments aren’t just a side hustle—they’re part of your financial ecosystem. So let’s treat them like it.

• Categorize them as assets.

  • On your balance sheet, investments typically go under:

  • Other Current Assets (if you plan to sell within 12 months)

  • Other Assets (for longer-term holdings)

• Track your gains and losses.

  • If you sell a stock, the profit or loss goes on your income statement as capital gains or losses.

• Record any dividends.

  • If your stock pays out dividends, that’s passive income, baby. Record it under “Dividend Income” in your profit & loss.

• Keep backup documentation.

  • Upload statements, receipts, or screenshots. Be ready if Uncle Sam ever comes sniffing around.

Step-by-Step: How to Track Stocks & Investments in QuickBooks Online

If you're using QuickBooks Online (and you should be if you like your life organized), here’s exactly how to keep your investments straight:

1. Log in to QuickBooks Online

2. Go to Accounting > Chart of Accounts

3. Click New to add an account

4. Choose Other Current Assets (short-term) or Other Assets (long-term)

5. Name the account (e.g., “Brokerage – Fidelity” or “Crypto Wallet – Coinbase”)

6. Click Save and Close

7. Head over to the Banking tab to connect any investment accounts that are supported

8. For unsupported accounts, manually upload transactions or enter them one by one

9. Record dividends as Other Income with clear descriptions

10. To log capital gains/losses, go to + New > Journal Entry

    • Debit/Credit your investment account and a “Gain/Loss on Investments” income account

11. Attach statements or trade confirmations to each entry

12. Go to Reports to run:

    • Balance Sheet for investment values

    • Profit & Loss for dividends and realized gains/losses

How This Shows Up on Your Financial Reports

Balance Sheet:

• “Investments” show up under assets (current or long-term)

• Your net worth gets a bump

Profit & Loss Statement:

• Dividends and gains = extra income

• Broker fees or losses = expenses

Cash Flow Statement:

• Buying = cash outflow under “Investing Activities”

• Selling = inflow

Your books now look like you know what you're doing—because you do.

Pros and Cons of Tracking Investments Properly

PROS

• Gives you an accurate financial picture

• Makes tax season way easier

• Helps you make smarter business or personal decisions

CONS

• A little more admin work upfront

• You’ll need to understand what’s “realized” vs. “unrealized” gains

• You might see your bad investments in bold print (ouch)

3 Top Programs to Help You Track Investments

1. QuickBooks Online

   • All-in-one for business and personal tracking

   • Clean reports, connects to banks and some investment platforms

   • Already walked you through the setup above

2. Personal Capital (now Empower)

   • Great for personal use

   • Tracks net worth, investments, cash flow in a visual dashboard

3. Xero

   • A solid QuickBooks alternative

   • Clean interface, custom accounts, and good for small businesses

Want a deeper breakdown of bookkeeping tools? Learn more

If your investments aren’t on your books, then your finances are giving “off the record.” Whether you’re stacking dividends or riding the crypto rollercoaster, make sure your money is doing more than just existing—it should be accounted for, managed, and making your reports shine.

Track it. Categorize it. Respect it. Because the only thing better than watching your investments grow is being able to prove it with clean, clear, and confident financials. As always, sending positive vibes your way.

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