Should equity be entered as External Equity for a new business?

Sorry if I am being silly but should the initial equity be entered as External Equity?

My understanding is

  • if you are transferring accounting records of an existing business to Manager then use “Starting balances” to enable continuity of accounting records from the date you start using Manager. See the guides:
    Starting Balances: Set start date | Enter starting balances

  • If you are starting a new business, so Manager’s accounting records start from the date the business started; then all “Starting Balances” are zero.

  • When a business starts it needs to get money from somewhere to be able to do business and trade. Where this money or assets come from should be recorded in Manager to reflect where the money or assets came from. For a sole trader that is probably owners equity. For a company or trust it is from the share holders, typically recorded in Manager via “Capital Accounts” See the guides
    Capital Accounts: Set up and use capital accounts | Use capital subaccounts