Best practice help with Ledger Accounts

Question

Hi - I am new to Sage and accounting in general and am looking for help with setting up ledger accounts. 
 If I want to track shareholder money in and out of the company for my partner and I, should I create 4 new ledger accounts? 
 Shareholder injection into company - Me Shareholder injection into company - my partner Shareholder repayment - Me Shareholder repayment - my partner 
 If so, what do I put as the categories (equity for injections, expenses for repayments?). Also, does it matter what account number and GIFI codes I give them? I'd also like to create a few more ledger accounts for services we will be using often. Design services, inspection services etc..... 
 Also, we each have a corporate credit card. Should I create separate ledger accounts to pay those? 
 Thanks in advance, Jason

Carolyn Longstreet · Accepted Answer

Have one Shareholder Loan account for each of you and your partner. Both injections and repayments flow through SHL accounts. SHL accounts are either long term or current liabilities depending on whether you expect to be repaid short or long term. Most people put them in long term liabilities. 
 When creating revenue and expense accounts, leave at least 10 numbers in between them. Don't worry about GIFI codes. Revenue accounts are usually listed in order of expected percentage of income. Expense accounts are usually listed alphabetically. Add accounts at the end of expenses (I use 5970, 5980, 5990) for Corporate Income Taxes, Gain/Loss on Disposal of Assets, and Suspense - where you put things that you don't know where they should go. 
 Set up a separate credit card account for each corporate credit card and set them up for reconciliation. Then go to Settings, company, credit cards and set up each card as a payment method (Visa Me, Visa Partner). When entering expenses paid by credit card, in purchases journal, select which card was used. Be sure to reconcile each account monthly.

Erzsi_I · Answer

Hey Jason Green , if the above suggested answer helped, please do mark it as verified Thank you!

Sage 50 Canada

Best practice help with Ledger Accounts

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