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newMyob's avatar
newMyob
User
2 years ago

Sole Trader Equity Accounts

Just signed up. Sole Trader structure. At sign-up I was shown a very short list of available company types and have included a picture of them below. "Sole Trader" was not available. I selected "Individual". When the company was created I was given a default chart of accounts that, in part, includes the equity structure that I have also picture below.

I would have expected an "Owners Contribution" account and an "Owners Drawings" account, instead I am shown "Personal Income" and "Personal Expenses".

  1. Are these account names equivalent? That is, can I treat "Personal Income" as "Owners Contribution" and "Personal Expenses" as "Owners Drawings"?
  2. Why have these names been used? I am not familar with this sort of naming convention for these accounts?
  3. The two accounts are linked (as can be seen in my image below) so I cannot simply delete them and add new accounts. But when I use the "Edit Linked Accounts" button on the Chart of Accounts page these equity accounts do not appear anywhere as being linked to anything. So what are they linked to? Can I unlink and delete them?
  4. If I simply rename them (easy enough) will they still be used by the system in some other way that I am not expecting as a result of their being linked to something?

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  • PriyaSelvaraj's avatar
    PriyaSelvaraj
    MYOB Moderator
    2 years ago

    Hi newMyob ,

     

    Thank you for raising your concern with us.

     

    Apologies that naming convention is causing some confusion here.

     

    Please see my answers for your questions below ;

              1.YES , You are correct .

                 Personal Income /Owners contribution

                 Personal expense/Owners drawing

             2. These naming conventions were rolled out in New dashboard to make it simpler.

             3. Equity accounts are not supposed to be linked as you have mentioned in the 'Edit Linked Account's page. Please refer to the image below which ensure they are not linked to any chart of accounts

     

          

    But instead it's shown as 'Linked' and MYOB is already aware of this issue and raised with our product team for rectification.

         4.  Yes , those accounts can be renamed/edited as they are not linked . It can be deleted , if there is no transactions associated to it.

     

    Please do let me know if you need further help

    Regards

    Priya Selvaraj