Bank accounts can be any type of nominal account that you receive money into or pay money out of. Once you have set up your bank accounts, you can use these bank accounts to process payments and receipts.  NOTE: There is a Cash in Hand account and a Current account automatically created for you. These are default bank accounts and can’t be deleted.
Types of Bank Accounts you can create from the Bank Accounts tab:
- Checking(US)/Chequing(CA)
- Saving
- Credit card
- Cash in Hand / Petty Cash
- Loan
- Other
Characteristics of the Bank Accounts:Checking(US)/Chequing(CA): - For a deposit account held at a bank or other financial institution.
- Automatically created for you in Accounting (cannot be deleted). You can create extra current accounts with the same functionalities but the ones you create can be deleted.
- You can connect to bank feeds
- You can import bank statements
- You can do a bank reconciliation
Saving: - You can connect to bank feeds
- You can import bank statements
- You can do a bank reconciliation
Credit Card: - You can import bank statements
- You can do a bank reconciliation
Cash in Hand: - By default, a single cash account is set up called Petty Cash
- This is automatically created for you in Accounting and cannot be deleted.
- You cannot connect to bank feeds
- You cannot import bank statements
- The reconciliation option is not available for this type of account.
- Use this for your cash activity only!
NOTE: If your customer pays you in cash or by cheque, or you pay your supplier in cash, you can easily record these against your cash-in-hand bank account. When you’re ready to deposit the money into your current account, you can use the bank deposits option which transfers the money from your cash-in-hand account to the relevant bank account. This means your accounts accurately reflect the transactions on your bank statements. Loan: - You cannot connect to bank feeds
- You cannot import bank statements
- You can do a bank reconciliation
Other: - You cannot connect to bank feeds
- You cannot import bank statements
- You can do a bank reconciliation
- Examples of other cash accounts are:
- Till Takings
- Emergency Cash float
NOTE: When you add a bank account, a general ledger account is automatically created for it with account type-appropriate settings.  EXAMPLE: For example, the general ledger account for a current account is set as an asset and is visible in areas such as journals and reports. Later, you can review and edit the general ledger account as needed in your chart of accounts.
NOTE: You cannot change the account type EXAMPLE: Savings to Loan, for example, general ledger account assignment, or delete an account after a transaction is created. If you choose to enter an opening balance when adding an account, it is automatically posted to the general ledger account as a transaction. |