Forum Discussion

Diana7's avatar
Diana7
7 months ago

Owners Personal Expenses

Hi  Can someone please tell me if an owner uses his business account for all personal payments. How do you allocate this? Accountant said it should all be consultancy fees. I just need to know what ...
  • Princess_R's avatar
    Princess_R
    7 months ago

    Hi Diana7,

     

    Thanks for your response.

     

    It's great to hear that you've already had a discussion with the accountant about this matter! Distinguishing between business and personal expenses is crucial for accurate financial reporting, especially when it comes to filing your BAS.

     

    Understanding what falls under business and personal categories is a big step, and now it's all about implementing the right setup in MYOB to reflect that distinction. I'll share some related inquiries from the Community Forum posts that I've checked, which should offer you some helpful guidance:

    Additionally, you may also find this Help article, Expenses for Business and Private Use, which may provide guidance. However, it is always recommended to speak with your accountant.

     

    Feel free to create a new post again if you need further assistance.

     

    If my response has answered your inquiry, please click "Accept as Solution" to help other users find this information.

     

    Cheers,

    Princess

Diana7's avatar
Diana7

Thank you much appreciated.

Diana7's avatar
Diana7
7 months ago

Actually one other question. The previous person doing the accounts, was adding GST to drawings which the accountant said was a way of paying personal tax. If I was to set up as per your suggestion would this still work? Thank you

  • Genreve_S's avatar
    Genreve_S
    MYOB Moderator
    7 months ago

    Hi Diana7, 

     

    Thanks for the response. 

     

    Based on the information available, adding GST to drawings is not a standard practice. Drawings are generally considered owner's withdrawals and are not typically subject to GST. However, tax laws can vary and it's always best to consult with a professional accountant or tax advisor for personalized advice.

     

    As for your proposed method of setting up a bank account for Owner's Funds/Personal Funds and paying expenses to that account, it seems like a plausible way to manage personal expenses. However, it's important to note that this method should be used in compliance with the appropriate tax laws and accounting standards.

     

    I strongly recommend consulting with a professional accountant or tax advisor to ensure that these practices align with the current tax laws and regulations.

     

    Please let me know if you need further assistance.

     

    Thanks,

    Genreve

    • Diana7's avatar
      Diana7
      7 months ago

      Thank you, i jave spoken with the accountant and the owner actually consults himself back to the business hence the GST, he does not render an invoice to the business he just draws out money when required. He also puts all personal expenses via the business.

      I want to be able to distinguish business items and personal items so when the accountant does his BAS it is all included.

      i have been able to workout what is private and what is business.

      Im just not sure of the setup in MYOB.

      thanks 

      • Princess_R's avatar
        Princess_R
        MYOB Moderator
        7 months ago

        Hi Diana7,

         

        Thanks for your response.

         

        It's great to hear that you've already had a discussion with the accountant about this matter! Distinguishing between business and personal expenses is crucial for accurate financial reporting, especially when it comes to filing your BAS.

         

        Understanding what falls under business and personal categories is a big step, and now it's all about implementing the right setup in MYOB to reflect that distinction. I'll share some related inquiries from the Community Forum posts that I've checked, which should offer you some helpful guidance:

        Additionally, you may also find this Help article, Expenses for Business and Private Use, which may provide guidance. However, it is always recommended to speak with your accountant.

         

        Feel free to create a new post again if you need further assistance.

         

        If my response has answered your inquiry, please click "Accept as Solution" to help other users find this information.

         

        Cheers,

        Princess

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