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dberner's avatar
dberner
Member
2 months ago
Solved

Solo Trader here - Person account to Business Account and back

Hi, I am a solo trader. I am in the process of setting up my business bank account, but have been using my person bank account for income and expenses in the mean time. 

I have a couple questions,
1. Should I input my person bank account payments into the program, to allocate payments from? Or is there another way to do it?
2. When I do have the business account up and running, how do I allocate money being transferred to my personal account, and if need be from my personal account to the business account?

3 Replies

  • DuncanS's avatar
    DuncanS
    Ultimate Partner
    1 month ago

    dberner​ Earl_HD​ 

     

    I presume you a Sole Trader.

     

    Lets say the Business Bank Account has been created by the Bank.

     

    Personal Deposits/Withdrawals to/from the Business Bank Account would be posted to the Equity Account Equity/Drawings.

     

    I would still reconcile the Personal Bank Account for some time.

     

    Duncan

  • DuncanS's avatar
    DuncanS
    Ultimate Partner
    9 days ago

    dberner​ Earl_HD​ 

     

    A Sole Trader uses a Equity Account called Equity/Drawings to record Personal Deposits or Withdrawals to/from a Sole Trader Bank Account.

     

    I agree with the MYOB article - The ATO also advises Business Owners to keep Business Transactions separate from Personal Transactions.

     

    Best to speak with your Tax Accountant for procedures in FY26.

    Has the Personal Bank Account been reconciled in MYOB?

     

    The Banks now match the Account Name when paying by Bank Transfer.

    It is important your Business Bank Account and EFT details on your Tax Invoice match.

     

    Duncan

     

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