Bank Accounts and Cash Accounts

When you pay bills, write cheques or receive payments you need to record which bank account or cash account the money is either withdrawn from or deposited in to.

Bank accounts represent your actual bank accounts and the system comes with the default 'Current' bank account to get you started. If you only have a single bank account for your business then this is probably all you will need.

If you keep a sum of cash, and you wish to control and record money relating to the cash account then we would suggest you create a cash account.

If you use a credit card you may also create an account for that.

When you first setup the accounts you will need to set the opening balance for the bank account. If you have just started trading with your farm business then the initial money deposisted into the bank account will need to recorded into the system as a journal entry, similarly if you setup your accounts after years of trading you will need to specify the bank balance again as a journal entry but this time specifying the balance as capital carried forward.

See Setting up your bank opening balance

 

You may pay bills in a number of ways including by cheque, debit card, credit card or with cash, and  you will be prompted to select the payment method and bank account when you pay a bill. Similarly when you receive payment you will be prompted to select the account where the money is deposited and the payment method. In both cases you may record the cheque number if appropriate.

When you receive your bank statement you may use the 'Bank Reconciliation' screen to check the account transactions and enter any bank charges or transactions you have missed.

Finally the cheque report will list all the cheques you have written and allow you to identify any you have failed to record.

See Also

Writing Cheques
Bank Reconciliation

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