Non-accounting account

1

Hi, I’m on the desktop version.

Can I create an additional non-accounting account?

I need to balance with a non-accounting account, is that possible?

Thanks

2

On the Profit and loss side create a sub-total at the bottom labelled Business total.

Create an account labelled non-Business costs and place it below the above sub-total

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3

I am looking for an account that does not post to the balance sheet to make an adjustment. I think I can fix this with a beginning of year account. Thanks for trying to help.

4

Can you explain what is the purpose of this account?

Accounting is based on double entry transactions so two accounts are always needed to record every transaction

This ensures that accounts are always balanced and can be verified easily

5

Explain why? Manager typically does not have annual accounting but perpetual.

6

What options do I have for the end of the year?

I need to start the new year with a bank account of 30,000 euros, how can I do this without affecting my net worth?

Net worth = 0
Bank = 30,000
Is this possible?

Thank you for your help.

7

I suggest you educate yourself about accounting

You do not seem to understand how it works

Try www.accountingcouch.com

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8

No, because the Net worth incudes the 30,000 in the bank account! In all accounting the accounting equation is Equity = Total Business Assets - Total Business Liabilities (See accounting coach as suggested by @Joe91). Net worth is usually used in personal accounting but represents the same, i.e. Net Worth = Total Personal Assets - Total Personal Liabilities.

A bank account is an Asset Account. You have 30,000 in it and no liabilities so Net Worth/Equity = 30,000 - 0

Manager and any other accounting system will thus always show Net Worth/Equity at 30,000 when Assets are 30,000. Manager therefore does not reset the Balance Sheet account.

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9

Thank you, I need an accounting course.

Would it be good to use Opening Balances if I start a new accounting year?

10

There is no need to start a new accounting year

The only time you enter starting balances is when you are migrating your accounts from another accounting system

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11

Ok, Thanks.