OK Janine, first things first - we will get though all these points together so please breathe easy.
With regards to your initial query regarding “wages” - has that been sorted, are you now comfortable with the ECA balance being zero ?
With regards to the Superannuation, the account would be showing as paid if it has a zero balance.
So if you edit the Spend Money payment and change the Account to Superannuation 9.5% it will end up as zero - so all paid, Now you can delete the COA - Superannuation Payable.
If the Starting Balance Equity represents the balance of your bank account - why has the balanced changed from 10,475.15 to 14,305.15 between your screenshots - a variation of 3830.00 which equals the change in value of the Liabilities total and the balance of the BAS/GST account. Was the opening bank balance the 10k or the 14k figure.
To show the combined payment of PAYG and GST you just enter each figure on separate Account lines within the Spend Money.
Thank you so much for your help Brucanna, yes the wages and superannuation liabilities is now correct, yahoo!
The bank balance as at starting Manager was $14305.15 the total of our 2 bank accounts, the amount changes between screen shots as I was trying to work out where to assign the $3830. that I paid this financial year for BAS from last quarter in the last financial year. I have it assigned to GST now, where should it be assigned?
When I was speaking about our PAYG, I was referring to our personal PAYG payment which we pay quarterly, not our employees PAYG, how should I assign this amount in spend money.
I can’t thank you enough for all of your help, This is a screen shot now, does everything else look correct
I’m having trouble uploading the screen shot
. All my expenses are now not showing negative and I think once I sort out this $3830 everything should be correct.
Glad to be of assistance - accounting or especially taxation isn’t that scary once the basic process is grasped.
With regards to the bank balances, have these now been assigned as opening balances under Cash Accounts…
With regards to the BAS payment (last qtr. previous year) it should be assigned based on its components - GST to GST, PAYG to PAYG (employee). Those payments should then cancel out the opening balances for those accounts.
With regards to the personal PAYG you haven’t said what type of entity you are, but if you are a sole trader or partnership then that personal PAYG is posted to the Drawing Account as it forms part of the “wages/profit” being taken out of the business.
It’s noted that you said “our personal PAYG” and “which we pay quarterly” which indicates that you each receive (separate from the BAS) a Quarterly PAYG Instalment Notice - this also implies (right or wrong) that you are operating a partnership - if this is the case then perhaps you haven’t got the Owners Equity quite set up correctly. Won’t say more until I know more.
However, if you are operating a company (Pty Ltd) then that changes things quite significantly.
Hi again, sorry to be so annoying, so I have put the opening balances of Payg and Gst for the amounts for the last quarter, in debit is that correct? Then I assigned the payments to the payg and gst liabilities account. This seems to have fixed the balances. It as changed my starting balance equity to $10,475 is this correct? Yes we are operating as a sole trader.
Thanks so much again!
Your Starting Balance Equity balance shouldn’t exist at all. Have you entered the bank accounts starting balances
So lets go back to the beginning of you using Manager - your final balance sheet of your previous accounting system should me a mirror image of the Manager Report - Starting Balances. Once that is established - bank account old = bank account new, GST account old = GST account new etc etc - then there is no reason for the Starting Balance Equity account to exist.
If you are operating as a Sole Trader, then there can only be ONE owner. So if you are both working in the business then one is an owner and the other is an employee.
This doesn’t mean that the “employee” one shouldn’t be receiving a Quarterly PAYG Instalment Notice as they may be receiving sufficient dividend/interest/rent earning to qualify for that notice
I’m sorry I just cant work out what is wrong. It’s a long story, but I don’t have an actual balance sheet from the old accounting system, I do know what our bank balance was, what we owed for payg and gst and for the unpaid invoices I made out new ones in Manager so they show as accounts receivable I believe. . I’m trying really hard to understand what I’ve done wrong but just cant get my head around it. Does it matter that the starting balance equity is there? Will it affect the other figures? I would really appreciate it if you can help me sort this out please.
My husband is the sole trader (I dont officially work for him) and we have 1 employee.I was using the royal “WE” sorry for the confusion.
Any help you can give me would be muchly appreciated, I’m about to tear my hair out,
Thankyou.
OK, it is quite simple - you haven’t put in an opening balance for Owners Equity.
Go to Settings - Chart of Account and edit Owners Equity, tick the box Starting Balances - change to credit and enter 13500.89 - problem resolved.
Hi there, this is my first post and I am in a similar position to Janine (sole trader, 1 employee).
I must have read this post at least 10 times but still don’t understand how it was resolved. On the one hand you say the starting balance equity account should not exist but on the other hand Nadine ends up with what appears to be a SBE of -3025.74
Welcome to the forum @clive. Let me suggest that if you have a question, you start over. This thread was 53 posts long. And the discussion was broad-ranging. Saying you have the same problem asks potentially helpful users to do a lot of heavy lifting by wading through it.
@clive - I must admit, on re-reading it, that last screenshot does seems to show it that way but that SBE balance (-3025.74) is represented by the Accounts Receivable invoices taken up, hence Janine’s comment “that is for the invoices that were unpaid” which received the response “Yes”
The Starting Balances “Report” would have shown an Accounts Receivable balance whereas the Starting Balance Equity account would only show accounts which received an opening balance.
Accounts Receivable doesn’t receive an opening balance per se, it creates a balance based on the invoices created, same would apply to Accounts Payable.
Apologies for the lack of clarity, but congratulations for being such as an astute reader and questioning an obvious ambiguity.
Has this resolved your particular issue?
EDIT: The Accounts Receivable account is not showing in the Balance Sheet screenshots as Cash Basis accounting is being used.
Wow - I was expecting an answer in a few days - not in a matter of hours (and on a weekend too) - thank you so much.
However, I still don’t understand - and I really don’t want to waste your time on this. My particular issue is that I have a negative SBE and don’t know (a) if that is OK and (b) if not, how to fix it.
The bigger issue is that I’m just not understanding Manager at all. I have looked over many posts over the last few months and never quite completely understand the answers - this is just one example.
It seems I’m already in trouble with @Tut for not opening up a brand new post, which I will endeavour to write up soon.
Thanks again mate
@clive - No you aren’t in trouble, just didn’t realise that your first post was related to this topic and wasn’t a new question. Also, you aren’t wasting my time at all.
But please do ask any new questions in a new topic, in the meantime, any SBE balance is not ok.
To be using Starting Balances, you must have been using another accounting system previously.
The last Balance Sheet from that system must match up with Starting Balances in Manager.
All accounts, except Accounts Receivable / Payable, have their opening balance entered via the chart of accounts
You can use the Report - “Starting Balances” to compare balances with the previous Balance Sheet.
