Help Centre

Setting up your company file > Set up accounts
Accounts provide a means for grouping similar transactions. For example, if your business pays rent for the use of its premises, you would create a rent account and then allocate all rent payments to that account.
If your accountant or MYOB Certified Consultant has provided you with a company file, this task may have been completed for you. In this case, go to Enter account opening balances.
When you created your company file, you selected a default accounts list to start with. This list may already have the accounts you need. If not, you can change the list to suit your needs. If you are unsure, ask your accountant which accounts you should create, edit or delete.
Each account is identified by a unique five digit number. The first digit indicates the account’s classification (for example, accounts starting with 1 are asset accounts). The remaining four digits determine its location within the classification. The lower the number, the higher up in the list it appears. For example, account 1-1100 appears above 1-1200.
The accounts list groups accounts into eight classifications—Assets, Liabilities, Equity, Income, Cost of Sales, Expenses, Other Income and Other Expenses. Within each account classification there is at least one account type.
Money in the bank, for example, in a cheque or savings account.
Accounts Receivable
Assets that, if required, can be turned into cash within a year. These may include your term deposits.
Assets which have a long life, for example, buildings, cars and computers. Fixed assets are usually depreciated.
Other assets you own such as loans made to others and goodwill.
Accounts Payable
Money owed by you that is due in less than a year, for example, GST.
Long Term Liability
Money owed by you that is due in more than one year, for example, a business loan.
The business’s net worth, that is, its assets minus its liabilities. Common equity accounts are current year earnings, retained earnings and shareholders’ equity.
The direct cost of selling your goods and providing services, for example, purchase costs and freight charges.
The day-to-day expenses of running your business, for example, utility bills, employee wages and cleaning.
Other Income
Other revenues, for example, interest earned on savings and dividends paid from shares.
Other Expense
Your accounts list consists of detail accounts (the accounts to which you allocate transactions) and header accounts. Header accounts group related detail accounts to help you organise your accounts list.
For example, you could group your telephone, electricity and gas expense accounts using a Utilities header account. This makes it easier for you to locate the utility expense accounts in the accounts list and to see your combined utility expenses.
Note that:

Click to show more information

Top of page