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Diana7's avatar
Diana7
User
23 days ago
Solved

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
    22 days 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
User

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
22 days 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

  • DuncanS's avatar
    DuncanS
    Ultimate Partner
    11 days ago

    Diana7 Princess_R Genreve_S Earl_HD 

     

    I believe the first question is what type of entity exists?

     

       Sole Trader or Company

     

    A Sole Trader cannot pay themselves a Salary.

    Nor would one think a Sole Trader could pay themselves a Consultants Fee.

     

    GST started in July 2000.

    A Input Credit cannot be claimed for Personal Expenses eg N/T code is used.

     

    Let me know.

     

    Duncan