working with myob for the first time

Question

This is so basic but here we go.

I have been using myob for other people's businesses over the last year but I have never set up myob for myself. I'm new to the accounts software world.

I decided now is the time as I have income coming in from freelance work. So I set up a new Business Lite account. I've connected ny new Work Bank Account to the myob profile. The new Work bank account is only for work income and expenses but I only opened it a few months ago. I want to enter income and expenses from the beginning of last FY but the expenses are all over the place mixed in with personal expenses in other bank accounts and from my personal credit card..

Does myob only make sense when connected to a bank balance? Can I enter all of my work transactions no matter which bank account they came from? Are there any videos that talk about this basic dilemna? Thanks in advance...

LRBooks61 · Accepted Answer

Hi

In your particular circumstances I make the following suggestion

For all the income and expenses that were made/spent prior to opening your business bank account:

Set up a bank account (1-XXXX) and enter all the transactions manually to that account.

Doing this ensures that you capture the expenses and income correctly

There will be times that you will use your personal credit card or cash or your personal bank in future so this can be ongoing.

This account wont be reconciled in the conventional way as it doesn't exist it is just catching these transactions.

Annually or quarterly or monthly , whenever it suits you I suggest you journal the balance of this bank account to your equity account (3-XXXX- owners contributions/drawings)

Hope that helps

Lisa