Entering transactions for a contractor
I have come over from Quicken Home & Business and have little accounting knowledge. I am doing the accounting for my wife's shop and she has a woman working with her but are not in an official partnership. The woman pays half of most expenses such as rent, utilities etc. She keeps all the cash from her jobs and for credit card sales, my wife pays her the amount in cash. I need to keep track of all her earnings and in Quicken I had an ANZ business account and a business cash account. I used invoices and with the cash transactions, I entered them all and then did a minus transaction on the total which gave me her total in reports without affecting my wife's figures. With the credit cards I issued her a credit for the amount. I need to know the best way to go about this accounting in MYOB and apologise for my lack of accounting skills.
Hi carljh
Welcome to MYOB and the Community Forum. As we're not accountants we're not permitted to advise on allocation accounts/tax codes or how these transactions should be recorded. I'd recommend discussing with your accountant the accounts you need to create and the transactions you need to record. Once you have that information I'll be happy to assist with how to record those transactions in the software.
Generally speaking, you could set the woman up as a supplier and as a customer. You could enter bills for the amounts owed to her and invoices for the amounts she owes, like half the expenses. You can then offset these amounts using a contra account. The Help article, Dealing with a supplier who is also a customer, has detailed information on this.
Please let me know how you go.
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