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 cash account, you must enable the Bank and Cash Accounts tab. Click Customize below the left navigation pane, check the box for the tab, and click Update:
You will see the Bank and Cash Accounts tab added to the left navigation pane:
Click the Bank and Cash 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 an integer 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 at least one foreign currency. By default, bank accounts are undenominated. But if you specify a base currency, they are assumed to be in your base currency, whatever that is. If you plan to use multiple currencies, or just want your currency symbol to appear on forms and reports, set a base currency. Bank accounts will then automatically be denominated in your base currency unless you edit this field.
Control accountoptions are available if a custom control account comprising bank accounts has been defined. The default control account for new bank accounts is Cash at bank.
Starting balance. This field only appears if a start date has been set.
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 Receipts or Payments tabs. The account will be greyed out in the Bank and Cash 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.
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 base currency on the Balance Sheet according to exchange rates you have entered. This is necessary so books are balanced in your base currency.
Drilling down from Cash at bank on Brilliant Industries’ balance sheet on the Summary page shows both bank account balances converted to Australian dollars, the base currency. It also shows their balances in their denominated currencies (with actual, not cleared, balances):
Its Bank Accounts tab shows both accounts with greater detail in their denominated currencies, including pending transactions and cleared balances:
Brilliant can see individual bank transactions by drilling down on any of the blue figures:
In the Bank and Cash 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.