Hi guys, I am starting a small business with a capital of 500,000$ and I would like to use the manager. but I am very confused with all the topics here because I couldn’t find right answers for my need. My scenario is simple, My investment is 500,000$ and I purchase inventory items and sell it for certain amount along with carrying expenses and other expenses as well. If anyone could help me where to begin with my Initial invest on the system? Thanks in advance
The way you choose to use Manager for your book-keeping records will depend upon a number of factors. Manager is very flexible, and how you account for capital investment will likely depend upon how you have chosen to structure your business. For example, if you have a Limited Liability Company and the initial investment is a loan from you (or others), then that investment will be recorded as a Liability in your balance sheet as a loan. On the other hand, if the investment funds are used to purchase shares in the business, then this will be recorded in the Equity area of the balance sheet.
In turn, (in either example above), when you purchase items of stock, those purchases can be recorded in the normal way, and Manager will keep both the records of those purchases and the relevant values of those purchases, and maintain records of the physical quantities of stock/inventory on hand.
IMHO, users should read the Manager guide manuals
and wherever possible try to become as familiar as possible with the principles of double-entry book-keeping.
The forums here have many very helpful and knowledgeable people, and if you can be as specific as possible when asking a question, you will find that the answers given will be more complete and accurate.
@Bratly, you would probably be wise to consult with an accountant and possibly an attorney about the issues @xero50 mentions above. Manager is like all tools: if you don’t know what the tool is supposed to accomplish, you not only won’t be able to use it well (and easily), but you risk damaging what you are working on (your company) and having to do more work to fix it.
You have to create a capital account and a cash/ bank account. Debit the receiver and credit the giver (basic accounting concept). In this case in the cash/bank account you receive money and then allocate it to the capital account that you have created. After that you will notice that your bank/ cash account has money that you will in-turn use it for your daily purhases or payments
This is only true for some forms of organization. @xero50’s comments are still valid, and I renew my advice to obtain professional advice.