A lot of people are kind of surprised to find out that I have somewhat of an accounting background. I learned the hard way how to keep books for, oh I don’t know, three years all throughout high school. Then I was in the accounting program at Arizona State University for two years. At the time, it was the top accounting school in the country—bought and paid for by Andersen Consulting—and it was competitive entry.
Between that and law school, abstract concerns like “what is the exact financial state of the company at this moment” concern me. And this concern brings my to my current problem.
I’m forming a corporation so that I can subcontract for future consulting work. The corporation is just about formed, but I don’t have the corporation capitalized yet. Nevertheless, I want to recognize the fact that the company owes me money for some expenses, including incorporation fees, some books, and more. Unfortunately, Microsoft Accounting 2008 (the freebie version) is not cooperating.

Yesterday, I thought I found a slick solution to the problem. I added a new account to my chart of accounts called unpaid reimbursements as a place to neatly record such liabilities. I did it from the “Add a New Financial Account” link on the Employee Payments screen and I numbered it 2050. I recorded the liability through the employee payment form and it posted to account 2050 just fine.
The problem is that now I can’t add another employee payment to that account using the same drop down. The drop down ignores the fact that I added a new account for just this purpose yesterday. (I tried every option to make it work.)
So now I’m left with a small mess—for the accountant mind in me, anyway. I have a little money sitting in an account that I can’t use. Thus, I either have to start making direct journal entries (which I’d rather avoid if possible), or I have to (1) merge out the new account into the one account that Microsoft Accounting seems to endorse for this purpose, 2600 Long-term Notes Payable and then (2) start charging new liabilities to this account. This is not ideal either because they aren’t “Long Term” liabilities.
Do you have any suggestions?
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