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hanlea's avatar
hanlea
4 years ago

Editing the amount of Owners funds introduced

Hi,  I am incredibly new to anything accounting. I have blindly made my way through so far, and entered the wrong amount into the Owners Funds Introduced section.  I want to edit this amount but ...
myob-ref-Accounting
  • Tracey_H's avatar
    Tracey_H
    4 years ago

    HI hanlea 

     

    That error message indicates that you are trying to delete the account completely. You don't want to delete the account, only edit it. You can change the opening balance amount two ways:

     

    Accounting>>Chart of Accounts>>click on the account name>>overtype the amount in the Opening balance field and click on Save (in my file the account is called Owner's Contributions):

     

     

     

     

    Or go to Accounting>>Chart of Accounts>>click on Edit accounts:

     

     

    Then enter the amount in the Opening balance field and click on Save:

     

     

     

    When entering or adjusting opening balances you need to make sure your debits and credits balance or the software will automatically post the out of balance amount to the historical balancing account. In the Edit accounts window the Remaining balance amount should be $0.00. This post explains opening balances in detail: Entering opening balances

     

    Generally speaking, Owner's Contributions or Introduced Funds would be money that you have actually transferred from your personal bank account to the business bank account. So you wouldn't enter an opening balance amount for that account. You would record a Receive money transaction for the amount transferred and allocate it to the Owner's Contribution account. You can then match those transactions to reconcile your bank account.

     

    If you are paying bills from your personal account on behalf of the business, the business owes you money so this wouldn't be Owner's Contributions it would be a liability account. Typically you would create a Director loan liability account with the Account Type as Credit Card:

     

     

     

    When you pay a bill or make a purchase from your personal account, record either a Spend Money or Pay Bill transaction in your software and change the Bank account to the Director loan account. This allows you to accurately track the purchases paid for out of your personal account and the money owed to you by the business. It also accurately reflects the money owed (a liability) by the business.

     

     

     

    If the business reimburses you, enter a Spend Money transaction with the Bank account as the business bank account and allocated to the Director loan account.

     

    A good tip for bookkeeping is that what you record in your software should reflect what happened in real life. For example, if you have entered Spend Money transactions for business expenses, was the money actually withdrawn from the account selected in the Bank Account field? Looking at it from that perspective can help you work out what you need to record. I would recommend finding an accountant or bookkeeper to assist with the set up of your file, you can have a look on our website for advisors and also for our free online courses which may help.

     

    Please let me know how you go.

     

    Cheers

    Tracey

Tracey_H's avatar
Tracey_H
Former Staff
4 years ago

Hi hanlea 

 

Thanks for your post. If you go to Accounting>>Chart of Accounts>>Equity tab, does it say Linked in the Linked column for that Owners Funds Introduced account? Generally you wouldn't have the Owner's accounts linked so if it is linked I'd click on Edit Linked Accounts and check what it has been linked to. This help article, Managing linked accounts, has information to help with this.

 

As MYOB uses the double entry accounting method, if you change an opening balance amount for one account you will need to adjust another account so that the total debits and credits match. If you don't, the software will automatically post the amount to the historical balancing account so that your Balance Sheet balances. Another way to change the opening balance is by recording a General Journal. I'd recommend speaking to your accountant about the other account that you will need to post to.

 

If the account isn't linked can you please send me a screenshot of the error so that I can troubleshoot further.

 

Please let me know how you go with this.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

  • hanlea's avatar
    hanlea
    4 years ago

    So there is no way i can change "$5000" to "$2500" in the amount i originally entered in the owners funds introduced. 
    I did check and it doesnt say "linked" to anything, but when i try to delete that entry to redo with the correct amount it says "you cant delete an account with journal entries. You cant delete and account with non zero current balance. You cant delete and account with activity.....

    I dont have a personal accountant to go through this with, I have been navigating it myself and just looking through the forums for answers as i make my way through. But its got me stumped why i cannot change an amount that i entered physically, to correct it since it was entered incorrectly. It seems once its entered thats it, concreted in. 

    The amount entered hasnt equalled out with all the movements in the account... Like i have entered spending money etc, but the amount i entered into the owners fund was way more than should have been and so it is in credit hugely compared to the amount spent. I just want to put that correct number in so that im not juggling money movement against an incorrect amount. 



    • Tracey_H's avatar
      Tracey_H
      Former Staff
      4 years ago

      HI hanlea 

       

      That error message indicates that you are trying to delete the account completely. You don't want to delete the account, only edit it. You can change the opening balance amount two ways:

       

      Accounting>>Chart of Accounts>>click on the account name>>overtype the amount in the Opening balance field and click on Save (in my file the account is called Owner's Contributions):

       

       

       

       

      Or go to Accounting>>Chart of Accounts>>click on Edit accounts:

       

       

      Then enter the amount in the Opening balance field and click on Save:

       

       

       

      When entering or adjusting opening balances you need to make sure your debits and credits balance or the software will automatically post the out of balance amount to the historical balancing account. In the Edit accounts window the Remaining balance amount should be $0.00. This post explains opening balances in detail: Entering opening balances

       

      Generally speaking, Owner's Contributions or Introduced Funds would be money that you have actually transferred from your personal bank account to the business bank account. So you wouldn't enter an opening balance amount for that account. You would record a Receive money transaction for the amount transferred and allocate it to the Owner's Contribution account. You can then match those transactions to reconcile your bank account.

       

      If you are paying bills from your personal account on behalf of the business, the business owes you money so this wouldn't be Owner's Contributions it would be a liability account. Typically you would create a Director loan liability account with the Account Type as Credit Card:

       

       

       

      When you pay a bill or make a purchase from your personal account, record either a Spend Money or Pay Bill transaction in your software and change the Bank account to the Director loan account. This allows you to accurately track the purchases paid for out of your personal account and the money owed to you by the business. It also accurately reflects the money owed (a liability) by the business.

       

       

       

      If the business reimburses you, enter a Spend Money transaction with the Bank account as the business bank account and allocated to the Director loan account.

       

      A good tip for bookkeeping is that what you record in your software should reflect what happened in real life. For example, if you have entered Spend Money transactions for business expenses, was the money actually withdrawn from the account selected in the Bank Account field? Looking at it from that perspective can help you work out what you need to record. I would recommend finding an accountant or bookkeeper to assist with the set up of your file, you can have a look on our website for advisors and also for our free online courses which may help.

       

      Please let me know how you go.

       

      Cheers

      Tracey

      • hanlea's avatar
        hanlea
        4 years ago

        Thanks Tracey, 

        I do appreciate the help. My brain is not very analytical friendly so i really struggle with numbers.
        I know that it can be frustrating for people who understand it all, trying to help someone who doesnt understand it like me and just not grasp it!

        I have tried your suggestions above, the first option typing in the Opening Balance field brings the total of Owners contributions higher to then add in the amount im entering PLUS the amount that i was trying to get rid of, so im not sure thats what im after. 

        I will get in touch with a few friends who use accountants and see if they can point me in the right direction of who to see. My brain needs a bit more face to face approach i think with being walked through it all. 

        Thanks a lot for your help, i will save the information and continue to use it to try out your suggestions in the meantime. I appreciate it.

        Hannah

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