Adding Members to capital accounts

Hello, I was trying to follow the guide regarding adding members. I have enabled capital accounts on the “Customize” tab under the seetings tab on the left. When I go to settings to look for “capital accounts” all I see is “capital subaccounts”. Capital subaccounts does not let me add members. Please advise.

Thank you

When you enable Capital Accounts by customizing the left navigation pane, Capital Subaccounts automatically appears under Settings.

You don’t create Members in the settings tab. Go to the Capital Accounts tab on the left, and then select the New Capital Account button. The name given here will the name of the new Member.

My mistake! :disappointed: I am still learning the new customization scheme. @pcal is correct. I confess I cannot discover what the Capital Subaccounts setting does.

It looks to me as if the Capital Sub-Accounts are for categorising cashflow into and out of the capital of the business. So for example, if one is paying a dividend to a shareholder, in the Bank Account section a Spend Money transaction comes from the Capital Account, which then asks for the Member Name, and then the Capital Sub-Account to classify the type of transaction. I’ve not actually made any money to pay a dividend out of yet, so there is a bit of guess work involved, but it looks like that is how it works. :smile:

That makes sense. I actually no longer use Capital Accounts at all, because my business is a sole proprietorship. I reversed all my capital account transactions and simply use Retained Earnings as the owner equity account, and renamed it as such.

intend incorporating my sole proprietor business soon where I will still be a 100% share holder. I intend setting manager with sub capital accounts at once. Pls y did u reversed to use the retained earnings and will u advice me to go ahead with my set up or I should use your style. I am now studying how manager works.

The Capital Accounts setup for a sole proprietor is completely different from the setup for a shareholder corporation. For a start they are completely different legal entities.

If you are currently a sole proprietor and are converting to a corporation then you need to start a brand new Manager business from that date. The transactions within the sole proprietor business can’t become transactions within the corporation business.

The opening Capital Account in a corporation can only equal the valve of the issued shares and the Retained Earnings account would be zero as the corporation hasn’t traded until its first transaction which is not a Starting Balance.
The sole proprietor Capital Accounts - contributions, drawing, retained earning - do not become part of the corporation’s BS - Equity section. These values would become combined within a Shareholders Loan A/C, if applicable to the corporation’s Starting Balances.

@Brucanna said it all.

Thanks very much