You can't add your personal account to the accounts list simply
because it's "personal". It doesn't belong to your business.
I would suggest creating a shareholder liability account that would
reflect your personal balance with your company. For example, if you
took $500 of your own money and put it into the company bank, you
would debit the bank account for $500 and credit your shareholder
account $500. So, in essence, the company owes you $500.
If you are using the company for personal cash flow (as I do), then
you should reflect all entries, as your company bank statement will
reflect them. For example, you take $100 out of your company account
on Jan. 1, $250 on the 3rd and put back $125 on the 5th, then you
should have 3 entries as follows:
1/1 - Credit bank - $100.00 Debit Shareholder account - $100.00
1/3 - Credit bank - $250.00 Debit Shareholder account - $250.00
1/5 - Debit bank - $125.00 Credit Shareholder account - $125.00
If you are going to give your books to an accountant for tax filing
purposes, he/she would probably prefer that you do it the above way.
If you will be preparing your own year-end books, then you can group
the entries into monthly or bi-weekly entries which would summarize
the month's transactions, or:
1/31 - Credit bank - $225.00 Debit Shareholder account - $225.00
If you are going to have a significant number of monthly entries, I
wouldn't recommend this second option as it makes after-the-fact
tracking much more complicated.
Why don't you set up a recurring entry called "Shareholder
Advances/Deposits" and use it to track the transactions. It takes mere
second to enter each entry.
Take care.
Roberta
On Thu, 07 Aug 2003 11:02:27 -0500,
(darthslam)
wrote:
>I am currently working back to the start of the last financial year to
>make tax time a little easier for me, and when I opened my business
>bank account, I put some money in it for initial expenses like
>advertising, but I cannot figue out how I can do this in MYOB.
>
>I do not want to add my personal bank account to the accounts list, as
>I am trying to keep them entirely seperate, and I do not want to
>update my personal account every time I buy groceries (etc).
>
>Any help would be much appreciated from any MYOB gurus.
>
>Duncan
