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akunthita
01-04-2004, 03:39 PM
When you have a small company where you are the sole proprietor how do you take out money for yourself, or add money to your business if needed. In Microsoft Money you just use owner withdrawal or deposit, but I don't see anything like this in Peachtree even though I set up the company as a sole proprietorship. I don't see any place for the owner at all. There are only sales reps and employees that you can set up, but when you are the owner and the only person in the company how do you set yourself up? You are not a sales rep, nor you are an employee. You are the owner. Please help with this. Thank you.

mandyp
01-04-2004, 10:03 PM
Just set up an Owner's withdrawal account. It needs to be located after the "Capital/Retained Earnings" account. The account type will be "Equity-gets closed". You may also want to set up a separate account for "Owner's Contributions" if you plan to add any capital to your company. This is also an "Equity-gets closed" account. Both of these accounts will carry their own balance for the year and when closed out at year end will be closed into the Capital/Retained Earnings account by the program. The balance sheet, under Liabilities and Capital, will show Capital at beginning of year (you need to input) followed by owner's withdrawals, then Net Income and Total Capital. Hopefully, your accountant should furnish you with a trial balance. This is an important tool to help you set up your books.

My company is on a "cash" basis so I don't use accounts receivable (used for an accrual system). The receipts for this method are simply recorded "as received". You can record them as they are actually received or do a weekly or monthly adjusting entry (General Journal) to record them. Credit your income account/s and debit cash. This avoids the whole accounts receivable thing. You might consider recording them directly from your deposit tickets. There are ways to simplify these transactions.

You will need to use A/P if you have any outstanding loans or have employees and have withholding taxes.

Lisa_p
01-05-2004, 09:04 PM
Set you husband up as a vendor for writing checks for owners withdrawals. Go to Tasks, payments, enter his vendor ID and in the G/L account in the line item detail, hit the Owners draw account as described by Mandy. Think of the G/L accounts (chart of accounts) as being just like the categories you use in MS Money( phone, withdrawals, office supplies, etc.)

For the money going in, go to Tasks, Receipts. You don't need to enter a customer ID, you can just enter your husband's name in the name field at the top. And in the line item detail, hit the owners contribution account.

If you can't see the G/L accounts on these screens, go to Options, Global and uncheck the check boxes in the "Hide General ledger accounts" area.

akunthita
01-06-2004, 09:51 AM
Thank you guys for all your help. Yesterday, after reading all the replies to my postings I actually started to tackle Peachtree instead of sitting frozen in front of the screen.

I also found a friend who has a PhD in accounting and uses both Peachtree and Quickbooks. I got together with him over the weekend to see how he does the accounting for a non-profit he runs. Just to see the software in action.

So.........making some progress here, I think. I set up our bank accounts, some of our vendors, streamlined the chart of accounts, and did all the transactions that happened this year.
Thank you Mandyp, for telling me about how to set up owner withdrawal and contribution. I did that too.

And Lisa gave that interesting idea about setting up my husband as a vendor. This brought up a question though. As I was working in Peachtree before I read her post I just entered the owner's withdrawal in the check register (with the appropriate general ledger account for owner's withdrawal). Is that wrong? Do I HAVE TO set him up as a vendor? Or if I don't have to, do I still want to do it for some reason? Is that a good thing to do? And why?

I actually have this same question in other areas as well. When entering expenses does it always HAVE TO be through a vendor? Say, there are some office expenses. I don't really need to or want to track who we bought paper from. We just run down to one of the local office supply places and pick up a stack of paper. So what I'm thinking is that I wouldn't want to set all these stores up as vendors. Otherwise I would have a real long list and I don't see the benefit of that.
I was thinking that I'm only setting up the vendors we regularly get services from; like the phone company, or credit reporting company, and the rest of them, who are not regulars, and we don't have an account with, I just enter in the register, and associate it with the appropriate expense account in the general ledger. Is there something wrong with this? Or is there a better way of doing it?

Same thing is there with income. My husband closes loans with so many different lenders. We don't see the reason to track them at this point. So I wasn't thinking of setting each of them up as a customer. Just enter it as received and in the memo part make a reference to the lender and file. (That's what we have been doing in Money.) My husband has to keep records and copies of all files closed anyway, so if necessary they can be easily looked up. Again, is this acceptable?
And not to speak of the actual customers who get the refinancing or purchase of a home. People don't do that very often so they would be mostly only one-time customers. Is there any benefit of tracking that in Peachtree through customers? Again, particularly because my husband already has to track them in an other software (called POINT). It seems like that would be just double work and double data.

So to summerize the question; does one has to, and if yes why, to go through vendors and customers, rather then just entering them in the registry and associating the entry with the appropriate account?

I think this is what really froze me after I first opened Peachtree. It says, "New Users Start Here" and it wants to walk you through so many set-ups. My accountant friend says he doesn't uses these features at all. He just uses the registry. Although he would recommend to set up these features in a company that has established and regular vendors, customers, etc.


I would really appreciate your input here. And I would like to mention again how much I'm grateful for the help of all of you.

(I also checked at the local community college. There is nothing for Peachtree, although there is some basic accounting class. I live in Gainesville, Florida. Tiny little place.)

Rose Grinding
01-06-2004, 11:03 AM
Originally posted by akunthita
And Lisa gave that interesting idea about setting up my husband as a vendor. This brought up a question though. As I was working in Peachtree before I read her post I just entered the owner's withdrawal in the check register (with the appropriate general ledger account for owner's withdrawal). Is that wrong? Do I HAVE TO set him up as a vendor? Or if I don't have to, do I still want to do it for some reason? Is that a good thing to do? And why?

No, you do not HAVE to set him up as a vendor, but in my experience it has streamlined the payouts to the owners here (in our case, my parents). When you set them up that way, you just set the default information so that the account affected is the owner's draw account number.


I actually have this same question in other areas as well. When entering expenses does it always HAVE TO be through a vendor? Say, there are some office expenses. I don't really need to or want to track who we bought paper from. We just run down to one of the local office supply places and pick up a stack of paper. So what I'm thinking is that I wouldn't want to set all these stores up as vendors. Otherwise I would have a real long list and I don't see the benefit of that.
I was thinking that I'm only setting up the vendors we regularly get services from; like the phone company, or credit reporting company, and the rest of them, who are not regulars, and we don't have an account with, I just enter in the register, and associate it with the appropriate expense account in the general ledger. Is there something wrong with this? Or is there a better way of doing it?

I'll give you an example of how we approach this. We do not use a gas credit card for tracking fuel usage in the company vehicle, so what we did was set up a "vendor" called FUEL PURCHASE, and whenever we have a receipt for a fuel purchase, it gets logged to that vendor w/ all the apporpriate information and we file it under the vehicle expense account number. We do the same thing w/ office supplies and a few other odds n ends categories that we do not need to track down to the nth degree.



(I also checked at the local community college. There is nothing for Peachtree, although there is some basic accounting class. I live in Gainesville, Florida. Tiny little place.)

In my experience the peachtree educational offerings around me (Dayton, Ohio) have been barely above the level of an insult to intelligence. I am not an accountant by trade, but have picked up quite a bit since assuming my role here. I have taken 2 seperate seminars and one college class that was supposed to educate me on the use of this software and by and large, it was nothing more than the tutorials you get offered in the book. In my opinion, you will learn things much better and much quicker by paying attention in these forums and adressing the issues which affect you directly instead of trying to do the broad based education approach.

hope this helps.

Tony

Jim Dale
01-07-2004, 01:24 AM
I have done some internet work using microphones, speakers, class manuals and the phone. It can be very effective.

Jim Dale
01-07-2004, 01:24 AM
I have a testimonial on my website

Deborah Bean
01-07-2004, 07:52 AM
If you are looking to set up your company and get moving in Peachtree, you might try picking up a book that does not insult your intelligence. Although written for Peachtree 2000 and earlier versions, it is applicable to all versions of Peachtree. The book is Learn Peachtree Accounting and it has a 3-month plan with almost everything you need to get started. It is based upon the setup of hundreds of companies, from brand new startups to conversions from well-established corporations.
You can find it at amazon.com or wordware.com and at many bookstores.
I'm currently working on an update.