Bank accounts are sources or repositories of money maintained by a financial institution of any type. Virtually every business needs at least one bank account. Possibilities include:
Before you can create a bank account, you must enable the Bank Accounts tab. Click Customize below the left navigation pane, check the box for Bank Accounts, and click Update. You will see the Bank Accounts tab added to the left navigation pane.
Click the Bank Accounts tab, then New Bank Account:
Define the bank account:
Namethe account so it will be recognizable. The name could include a description, a bank’s name, a credit card designation, or an account number.
Codeallows you to set the order in which bank accounts are listed. Enter a number. If blank, accounts will display in alphabetical order.
Credit limitcan be set, especially for credit cards. You can also use this field to indicate the amount of overdraft protection.
Currencyoptions will be available if you have set a base currency. By default, bank accounts are undenominated. That is, they are assumed to be in your native currency, whatever that is. But if you plan to use multiple currencies, or just want your currency symbol to appear on forms and reports, set a base currency. (Go to Settings Base Currency, select a base currency in the dropdown box and click Update.) Bank accounts will then automatically be denominated in your base currency. Change the selection for a specific bank account in its
Inactivebox appears after a bank account has been created. It can be checked if the account is closed. (Bank accounts cannot be deleted from Manager if they have any past transactions, because doing so would eliminate the records of those transactions and affect active Balance Sheet accounts.) If the box is checked, the bank account will not appear in lists for transactions in the Bank Transactions tab. The account will be greyed out in the Bank Accounts tab listing. Edit it to restore to active status.
You should only add bank accounts that belong to the business. Personal credit cards and personal bank accounts used infrequently for business transactions should not be added as bank accounts. Transactions using such personal funds should be entered as expense claims.
If you are migrating to Manager from another accounting system and have a balance in a bank account on your start date, enter a starting balance as described in this Guide.
Brilliant Industries, an Australian company, has one business bank account used to receive money from customers and pay suppliers and employees. The business also maintains an account with a London bank for transactions in the United Kingdom. The business owner occasionally uses a personal credit card for business expenses. Brilliant Industries creates two bank accounts in different currencies:
Brilliant Industries does not create a bank account for the personal credit card of the owner because it is a personal account. The owner’s use of the personal credit card will be recorded in the Expense Claims tab.
By default, all bank accounts are combined into an automatic control account named Cash at bank for Balance Sheet reporting. Foreign currencies are converted into your native currency on the Balance Sheet according to exchange rates you have entered. This is necessary so books are balanced in your base currency.
Northwind Traders maintains a primary bank account in Euros and another for transactions in the United Kingdom in British Pounds. Its balance sheet shows both converted to Euros, the base currency:
Its Bank Accounts tab shows both accounts with greater detail in their denominated currencies, including pending transactions and cleared balances, in their respective, denominated currencies:
Northwind can see individual bank account transactions by drilling down on any of the blue figures:
In the Bank Accounts tab, you can find information about all bank accounts, even if you have modified your chart of accounts so they are reported on the Balance Sheet under different control accounts.