But i still dont know what should i do to record it because i am very very new to manager and no skill on accounting.
What i thinking is…
Method one:
Bank Accounts → New Bank Accounts → Name = “Personal Bank Account”
Setting → Chart of Accounts → New Account → Name = “Personal Living Expenses” / Group = “Equity”
Receipts & Payments → New Payment → Account (Upper one) = “Personal Bank Account” / Account (Below one) = “Personal Living Expenses” / Unit price = “1000”
Method two: (i think this method should be wrong…)
Bank Accounts → New Bank Accounts → Name = “Personal Bank Account”
Cash Accounts → New Cash Account → Name = “Personal Living Expenses”
Inter Account Transfers > New Inter Account Transfer → Paid from = “Personal Bank Account” / Received in = “Personal Living Expenses”
My question is:
1~~ Two method which one is right? Or both are wrong? If both wrong, let me know what should i do, thanks.
2~~ Should i call “Personal Living Expenses” as “Proprietor’s Current Account”?
3~~ If my “Personal Living Expenses” total (1000usd) == All My Earning total (1000usd), and if no any other item on my Balance Sheet, then now my Balance Sheet “Equity” Will be 0 (zero)??
4~~ If i also pay credit card fee (persional use) from my “Personal Bank Account” online service, i just need do follow step right? let me know if i am wrong.
Bank Accounts → New Bank Accounts → Name = “Personal Bank Account”
Setting → Chart of Accounts → New Account → Name = “Personal credit card fee” / Group = “Equity”
Receipts & Payments → New Payment → Account (Upper one) = “Personal Bank Account” / Account (Below one) = “Personal credit card fee” / Unit price = “500”
No transactions having to do with a personal credit card should be entered in your business accounts.
You need to learn how and why personal and business accounting are separate for proprietorships. And you need to learn about double-entry accounting before you can use a program like Manager. I recommend starting here: https://www.accountingcoach.com/. It’s free and there are lots of examples.
If my Sole Proprietorship do not have a business accounting (in real, i dont have it…the money really transfer to my personal bank acc from paypal…i know i should apply a business accounting but i dont have…) then will my method one is ok? But yes…i dont think i am doing right…
Because my business the money will come like this in real world
transfer from paypal to my personal bank acc and become 750hkd
now i can atm take out the money for my personal use
So that why i have create a personal bank acc at “Bank Accounts”, if i dont create a personal bank acc so how can i record paypal(usd) tarnsfer money to my personal bank acc(hkd) and the exchange? (step 3 and 4)
I read this two post and the first post said Set up and use capital accounts, but at the post last it said i can use Simplify equity accounting for sole traders / proprietors.
I tried rename Retained earnings as Owner’s equity but what next i need to do?
I tried transfer money from paypal(usd) to paypal(hkd) (exchange, in real it really exchange once at paypal website and send to my personal bank acc at same time)
Receipts & Payments / New Payment and record the money from paypal (HKD) to owner’s equity when i take out money from my personal acc at ATM .
But in real world, the money not take out from paypal(HKD), its take out from my personal bank acc at ATM, for example
2019-01 transfer from paypal(750hkd) to personal bank acc(750hkd)
2019-04 take out the money 400HKD from my personal bank acc at ATM
So the timing is wrong because 2019-04 not direct from paypal to ATM
I cant find a Solution on this point. How can i record this at Manager?
@heyjo00as, your English is not the problem. You simply have your personal and business finances too tangled together. As I wrote before, most of the events you describe are not business transactions and should not be entered into Manager.
You can run a business from your wallet as a cash account. But once you introduce three financial institutions and two currencies, that does not work anymore. The trouble is that you are moving business income through personal accounts and converting currencies within one of them. So in Manager, that PayPal account must be two different bank accounts. Now you have four bank accounts. And then you take money from what should be a business account as personal draw.
As I said before, you need to understand proper equity accounting for a proprietorship before you can hope to account correctly for your business. Invest the time to learn the accounting principles. Then learn Manager.
@heyjo00as, you have scattered your discussion of withdrawing money in multiple topics on the forum. That makes it very difficult to obtain answers, especially when you keep asking the same questions again and again. Your questions have been answered.
