Equity Account for Current Earnings

This field displays the number of the account that tracks the increase in your business's equity during the current fiscal year. The amount assigned to this account is determined by subtracting the balances of all cost of sales and expense accounts from the balance of all income accounts (current earnings = income - cost of sales - expenses). In MYOB AccountEdge documentation, this account is referred to as your Current Year Earnings account.

This account is used to calculate your profit (or loss) for the year to date. This information is used to print the Balance Sheet and other important reports. It cannot be changed; this is to prevent errors and to ensure accurate financial reports.

Equity Account for Retained Earnings

This field displays the number of the account that tracks the increase in your business's equity during its lifetime, not including the current fiscal year. When a new fiscal year is begun, the current earnings account's balance is added to the balance of this account. In MYOB AccountEdge documentation, this account is referred to as your Retained Earnings account.

This account is used to calculate your profit (or loss) for the year during the year-end closing process. This information is used to print the Balance Sheet and other important reports. It cannot be changed; this is to prevent errors and to ensure accurate financial reports.

Equity Account for Historical Balancing

This field allows you to enter an account that tracks the difference in the opening balances you entered for your asset accounts and the opening balances you entered for your liability and equity accounts. If, for example, the opening balance of all your asset accounts is $100,000, and the total balance of all your liability and equity accounts is only $95,000, the remaining $5,000 will be assigned to this account. To ensure your business records are accurate, this account's balance should be zero.

In MYOB AccountEdge documentation, this account is referred to as your Historical Balancing account.

This account is used when you first set up your MYOB software. The principles of double-entry accounting require that all your transactions are balanced -- that all your debits equal all your credits. If you're switching to AccountEdge from a manual accounting system, it's possible that minor errors might have occurred; this account collects any out-of-balance amount for your opening entries and enables you to continue using AccountEdge even if the entries in your previous accounting system didn't balance perfectly.

Bank Account for Electronic Payments

This account allows you to track funds you wish to include on an electronic payment. The linked account must be a Detail Bank account -- Bank account type.

When you make an entry in the Spend Money, Pay Employees or Pay Bills window, you can choose to group the transaction with other electronic payments.

When you choose this option, the amount of the transaction will be recorded in the account you enter in this window and will remain there until you pay it electronically using the Prepare Electronic Payments window. In the Prepare Electronic Payments window, you'll use the account you selected in the MYOB Business Services Setup window to pay the electronic payment.

In MYOB AccountEdge documentation, this account is referred to as your Electronic Clearing Account.

You can choose to pay employees electronically by choosing Electronic from the Payment Method selection list of the Payment Details view of the Card Information window. When you change the account in this window, it is also changed in the Payroll Linked Accounts window.

Bank Account for Undeposited Funds

This field allows you to enter an undeposited funds account into which individual cash-receipts transactions are recorded -- not directly to your checking or credit card accounts. After you've grouped all of the Receive Money transactions you wish, you can then make a bank deposit which will include the group of Receive Money transactions you select. Using this method, a single bank deposit transaction will appear on your bank or credit card statement in place of many Receive Money transactions. The linked account must be a Detail Bank account.

In MYOB AccountEdge documentation, this account is referred to as your Undeposited Funds account.

When you make an entry in the Receive Money, Receive Payments or Sales window, you can indicate that you want the amount to be grouped with your undeposited funds; if you do this, those funds will appear in this account until you deposit them in a bank account using the Prepare Bank Deposit window.

Account for Currency Gains/Losses

If you use Multicurrency, there is the potential for changes in the exchange rate between currencies to affect the value of your transactions and accounts. This potential is referred to as an unrealized gain or loss.

For example, if you sell goods to a Japanese firm and you conducted the transaction in Japanese yen, any changes to the value of the yen will affect the overall profitability of the transaction. If the yen rises between the time the sale is made and the time payment is received, you'll make money as a result of the currency gain. If the yen loses value over that time period, you'll lose money -- a currency loss. The linked account for currency gain/loss keeps track of these amounts so you don't have to.

Some - but not all - companies need to account for unrealized gains and losses; consult your accountant if you're unsure whether you need to track this information for your business.

This field allow you to enter an account for unrealized currency gains or losses.

In MYOB AccountEdge documentation, this account is referred to as your Currency Gain Loss account.

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