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Idea: Enter all your accounts before proceeding At this point, you've created a single account. If you plan to add many accounts to the MYOB BusinessBasics system -- for example, if you're setting up your company for the first time -- we suggest that you perform the following steps again for each account that you plan to set up: Choose the type of account you want Enter basic information about the account Enter budgets for the account (optional; detail accounts only) Then, when you're finished entering all your accounts, continue with the next two steps.

The Account Opening Balances window should be displayed. (To find this window)

1. If your conversion month is the first month of your fiscal year, enter the opening balances of your asset, liability and equity accounts only. (The opening balances of all your income, cost of sales and expense accounts should remain zero.)

If your conversion month is not the first month of your fiscal year, enter the opening balances of all your accounts.

You should almost always enter opening balances as positive numbers. Don't, for example, enter your liability accounts' balances as negative numbers. BusinessBasics knows whether your accounts usually have positive or negative balances. Enter negative amounts only if accounts have negative balances.

Note: Important information about a few specific accounts Some of the accounts in your accounts list require some "special treatment" when you're entering opening balances. Please read the following information carefully. Current Year Earnings One of your most vital accounts is the equity account called Current Year Earnings. The balance of this account is incremented automatically during the course of your normal BusinessBasics business activity. Although this account doesn't appear in the Account Opening Balances window, don't worry -- it does exist! Since BusinessBasics calculates the balance of this account automatically, you can't enter an opening balance for it. If your conversion month is the first month of your fiscal year, the opening balance of your Current Year Earnings account will be zero. This indicates that your company hasn't acquired any income in the current year because the year has just begun. Retained Earnings If you've just begun using BusinessBasics, enter your company's entire previous year's earnings as the opening balance of your Retained Earnings account.

2. Check the field at the bottom of the window that's labeled "Amount left to be allocated:"

• If this field displays $0.00, the total of the opening balances you assigned to your asset accounts equals the total opening balances of your liability and equity accounts.

• If you didn't enter an opening balance for your main inventory asset account in the last step, the amount displayed in the "Amount left to be allocated" field won't be zero -- the amount displayed will equal your opening balance amount for inventory.

• If the "Amount left to be allocated" field displays an amount other than $0.00 and you aren't tracking inventory costs, you should review the opening balances you've entered to be completely sure you've entered the exact amounts. (To keep accurate fiscal records, it's important that the total of your asset accounts' opening balances equals the total of your liability and equity accounts' opening balances.)

• If the "Amount left to be allocated" field still doesn't display $0.00 after you've rechecked your opening balances, click the OK button. The amount that appeared in the "Amount left to be allocated" field will be assigned to a special equity account called Historical Balancing.

3. Click OK.