🎁 EXCLUSIVE DEAL - Get 90% Off Xero for 6 months by signing up here: bit.ly/ytxero90 ✅ Get your FREE Xero Setup Checklist here: bit.ly/3ZgSaqt 👉 Master Xero without getting stuck with The Ultimate Xero Course for Australia: bit.ly/3CFkMkl ►► Do you wish you could get step-by-step instructions for setting up and using Xero quickly and easily? ►► Do you want clear explanations in plain English with all the information in one place? ►► Do you want to feel confident that you’re doing it right? 🚀 Then check out the step-by-step program for business owners to master Xero without getting stuck: bit.ly/3CFkMkl
Few questions: 1. Why both debit & credit use Current Liability (880 Owner's Drawing & 090 Business Bank account) instead of Cash (credit, Asset account) & Owner's Drawing (debit as Equity account, not negative debit as Current Liability), 2. The ending balance of the Owner's Drawing (880 account) is negative $15.75 on the video. How do you close it at the month-end because the negative amount cannot stay there permanently / needs to be nil at the end of the month ?
Thanks for this Mark, couldnt explained any better. I have just jumped onboard with Xero, and had to use my business debit card for a period of time for personal transactions, and needed to reconcile these. So makes complete sense and how this will be removed from the P/L. Do you have any videos on initial setup? I missed entering my conversion date when I first started, not that I had any credits, outstanding bills or anything of that sort, so not sure how this will affect my balance, but I suppose it needs to be done...
Hey Mark, how about you have purchased 11 items but only 3 of the items are for the business. how do you reconcile that? Would you help me as I need the help. TIA
Hi there, would I use the same process if I am using my business credit card for personal reactiontransactions just to get more points but I use personal money to repay the transaction?
Is it possible to set-up a prepayment for large personal transactions? For example, a overseas trip paid using the company card, but pay it (allocate payments) over a number of months? Can I use 'pre-payments' for a personal expense?
Great tips thanks. I was looking for slightly different advice (although this was real helpful).I purchased a mobile phone for business use with my personal credit card as I dont currently have a business credit card. I'm planning to paying monthly repayments for the mobile purchase (over 12 months) from the business account. Do I just put this under the retailer with account for my utilities/mobile? Or do I need to make this a liability or loan? Thanks
Thanks for this video- so I am a sole trader and my bank accounts in Xero have both business and personal expenses in them that need reconciling. So do I put all my personal expenses, ie all the expenses I cant claim on the business, into this Owner Drawings acct? So it doesn't appear in profit/loss? And is there an equivalent for Non taxable income such as child support? thanks for the advice
Yes you will need to put all personal income and expense items through your Owner Drawings and/or Owner Funds Introduced accounts. I recommend getting a seprate bank account for your business so only business transactions end up in Xero. It will save you a lot of reconciling.
@@mark-and-trina ah thanks for the reply. I'm a Sole Trader. So you mean separate bank accounts- a sep daily account to receive income, a separate high interest savings for GST/ Tax profit holdings and a separate CC?
@@KrisRowe-xp7ym If you want to get all those things you can. But the main thing is to run your business and personal lives through separate finance products.
@@mark-and-trina thanks. So the Owner Funds introduced account is the best place to put the Child Support and FTB? I'll set up some business accounts moving forward but I still have to reconcile last Fin Year.
Sorry I can't give specific tax advice but in general if you take money out of your business to pay for personal things you'll probably have to pay some sort of tax.
🎁 EXCLUSIVE DEAL - Get 90% Off Xero for 6 months by signing up here: bit.ly/ytxero90
✅ Get your FREE Xero Setup Checklist here: bit.ly/3ZgSaqt
👉 Master Xero without getting stuck with The Ultimate Xero Course for Australia: bit.ly/3CFkMkl
►► Do you wish you could get step-by-step instructions for setting up and using Xero quickly and easily?
►► Do you want clear explanations in plain English with all the information in one place?
►► Do you want to feel confident that you’re doing it right?
🚀 Then check out the step-by-step program for business owners to master Xero without getting stuck: bit.ly/3CFkMkl
This was the final piece of the puzzle to understand the platform. Thanks for your help, much appreciated!
Subscribed.
Few questions: 1. Why both debit & credit use Current Liability (880 Owner's Drawing & 090 Business Bank account) instead of Cash (credit, Asset account) & Owner's Drawing (debit as Equity account, not negative debit as Current Liability), 2. The ending balance of the Owner's Drawing (880 account) is negative $15.75 on the video. How do you close it at the month-end because the negative amount cannot stay there permanently / needs to be nil at the end of the month ?
Thanks for this Mark, couldnt explained any better. I have just jumped onboard with Xero, and had to use my business debit card for a period of time for personal transactions, and needed to reconcile these. So makes complete sense and how this will be removed from the P/L. Do you have any videos on initial setup? I missed entering my conversion date when I first started, not that I had any credits, outstanding bills or anything of that sort, so not sure how this will affect my balance, but I suppose it needs to be done...
This is very important because it’s our regular activities. Thanks and best regards
So nice of you
Hey Mark, how about you have purchased 11 items but only 3 of the items are for the business. how do you reconcile that? Would you help me as I need the help. TIA
Hi there, would I use the same process if I am using my business credit card for personal reactiontransactions just to get more points but I use personal money to repay the transaction?
Is it possible to set-up a prepayment for large personal transactions? For example, a overseas trip paid using the company card, but pay it (allocate payments) over a number of months? Can I use 'pre-payments' for a personal expense?
Great tips thanks. I was looking for slightly different advice (although this was real helpful).I purchased a mobile phone for business use with my personal credit card as I dont currently have a business credit card. I'm planning to paying monthly repayments for the mobile purchase (over 12 months) from the business account. Do I just put this under the retailer with account for my utilities/mobile? Or do I need to make this a liability or loan? Thanks
You may need tax advice. Another option is to pay yourself an allowance but there are tax implications so I can't advise anything specific sorry.
Thanks for this video- so I am a sole trader and my bank accounts in Xero have both business and personal expenses in them that need reconciling. So do I put all my personal expenses, ie all the expenses I cant claim on the business, into this Owner Drawings acct? So it doesn't appear in profit/loss? And is there an equivalent for Non taxable income such as child support? thanks for the advice
Yes you will need to put all personal income and expense items through your Owner Drawings and/or Owner Funds Introduced accounts. I recommend getting a seprate bank account for your business so only business transactions end up in Xero. It will save you a lot of reconciling.
@@mark-and-trina ah thanks for the reply. I'm a Sole Trader. So you mean separate bank accounts- a sep daily account to receive income, a separate high interest savings for GST/ Tax profit holdings and a separate CC?
@@KrisRowe-xp7ym If you want to get all those things you can. But the main thing is to run your business and personal lives through separate finance products.
@@mark-and-trina thanks. So the Owner Funds introduced account is the best place to put the Child Support and FTB? I'll set up some business accounts moving forward but I still have to reconcile last Fin Year.
Why owner's draw account under current liability, not equity? Is it because it will be paid by the owner?
It can be done in different ways.
Sir i have a doubt? Is this drawing taxable on personal income tax?
Sorry I can't give specific tax advice but in general if you take money out of your business to pay for personal things you'll probably have to pay some sort of tax.