Before I explain my questions, I want to start off by saying that I have a Hobby business - I am below income for tax requirements for my country so do not collect or pay VAT. I am only trying to navigate this software to manage how much money I put into my hobby and track sales/income to make sure it’s within my acceptable range of what I consider time well spent.
Now to the part I need help with! I set up a chart of accounts, I have an equity account for myself and friend/hobby business partner, who also contributes. I have a draw account for each as well. I have several invoices that I had previously recorded payments for and were showing no money owed. When I tried to ‘spend money’ from our cash account for the first time to our draw accounts, it at first looked correct since it was showing negative. Upon looking further though, all the invoices that the money in the cash account had paid off, are now showing that they are not paid. I deleted the ‘spend money’ transaction and am now trying to fix this. Money is still showing up in my cash account but I can’t seem to apply it to specific invoices, adding reference numbers doesn’t apply it, resaving doesn’t apply it. Do I have to remove all the payments and re-enter them? Secondly, where did I go wrong in moving money from the cash account to the draw account? Transfer doesn’t offer any equity accounts, draw or capital.
Thank you for taking the time to read! Any help is greatly appreciated!