Here's a list of the linked accounts that are associated with Accounts and Banking accounts, along with information about how each linked account is used:
Equity Account for Current Earnings
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
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
Used when you first set up your MYOB software. As mentioned earlier, 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 FirstEdge 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 FirstEdge even if the entries in your previous accounting system didn't balance perfectly.
Bank Account for Undeposited Funds
Used to track funds you've received but haven't deposited into a bank 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.
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