How do I Manage my Company Bank Accounts, Credit Cards, etc?

Setting up Bank Accounts and recording Transactions.

Written By Gerry Mckeown ()

Updated at December 9th, 2020

1.     Introduction:

You can set up Bank Accounts for any Financial Institution that you deal with including Banks (Current Account, Deposit Account, Foreign Currency Accounts, etc.,), Credit Card Companies, Leasing Companies, Finance Houses, your Petty Cash Box, and even Employees and Directors to whom you sometimes advance Cash or Foreign Currency. 

Each Bank Account must have its own General Ledger Control Account which you can create in advance and subsequently allocate to the Bank Account and which must be unique to that Bank Account.  Should you wish to do this or indeed use an existing General Ledger Code for the Bank Control Account then please note that the General Ledger Account that you set up must initially have a Posting Type of “P” and not “B”; the process of setting up the Bank Account will change this to “B” whereupon this Control Account cannot be used again for any new Bank Account or other purpose.  

When you open up the Bank System and choose the Bank Accounts option, you are presented with “at a glance” details of all your Bank Accounts in the following format;

The facilities available under “Import Transactions” and “Reconcile Now” are detailed in the two accompanying Articles; “How do I Use the Bank Import Facility to assist with my Bank Reconciliation?” and “How do I Carry out a Bank Reconciliation?” and which will guide you through these processes.

2.     Setting up a New Bank Account:

Before setting up a new Bank Account you can set up a General Ledger Control Account Code for your new Bank Account.  Go To > General > General Ledger Accounts >New General Ledger Account to set up the new Account.  This account will hold the Bank Balance and associated transactions. When setting up this General Ledger Code, be sure to give it a Posting Type of “P”.  Later on in the Bank set up process, this will automatically be changed to Posting Type “B”.

Alternatively, instead of creating the General Ledger Code in advance, you can create a new General Ledger  Control Account Code during the Bank set-up process (see below);

On the very first screen above, click on “Add New Bank” which then invokes the following Window;

Locate the General Ledger  Control Account Code which you set up from the Drop Down list and then fill in the appropriate information for the new Bank Account.  When finished, Click “Save”.  (You may have to “Refresh” the main bank screen to see your new Bank Account).  The fields relating to “Online Banking” are used in the Supplier’s (Vendors) Batch Payments program.  The “Type” field (accessed via the associated Drop Down) determines the particular file format (one of many supported) of your Bank.  If yours isn’t listed then contact your System Provider who will add your Bank’s file format.  The “Group Online Payments” tick box allows you to group the many generated on-line Supplier  (Vendor) Payments into a single entry in your system’s Bank Reconciliation.

As mentioned before, you can also create the Bank General Ledger  Control Account Code during the Set-up process.  Just engage the General Ledger  Account Drop Down Box to invoke the Create new General Ledger  Account facility.  In this instance it doesn’t matter whether you assign a “Bank” or “Posting” account type to the General Ledger Code.  When you save the bank details the General Ledger Account type will automatically be set to a “B” type;

To Edit a Bank Account’s details, Click on the “A/C Details” against the appropriate Bank Account as highlighted in Red on the very first screen at the top of this Article.

3.     Bank Account "Actions":

Highlighted in the Purple box on the right hand area of the first screen above, access to these features of the system can also be obtained from the Main Menus. 

   Sundry Payments are used to make Payments from the relevant Bank Account to organisations, agencies and people who are not recorded in the Creditors (AP) Ledger (e.g. VAT  (Tax) Payments, N.I. Deductions, Credit Card Companies, etc.) and Sundry Receipts are used to deposit transfers from organisations who are not part of the Debtors (AR) Ledger (e.g. occasional sale of an Asset, Insurance Claim, repayment of Employee Cash advance, etc.).

>    Bank Transfers, not to be confused with your live Bank’s Online-Banking System transfers, are used to record transfers you make between the Bank Accounts you have set up and manage within this system.  In the case of transfers from Foreign Currency to another Currency you can either supply the Rate of Exchange or the equivalent amounts.

>    Debit and Credit Journals are used to make adjustments to the Bank Account (e.g. bounced Cheques, Credit Card refunds, Sundry Bank Charges, errors, etc.) and, using the template facility (see below), to create and post regular bank transactions in respect of items such as Finance Leases, Rental Agreements, Loan Account payments, Deductions, etc. 

   Bank Reconciliation and Cashflow Forecasting are the subject of separate Articles.

4.     Bank Account Transactions:

You can view the Transactions relating to the Bank Account in question by clicking on the “View Transactions” option shown in the Current Balance column (highlighted in Blue) on the first screen shown above.  This will open up the Transaction Browser window which will allow you to filter and select various ranges of transactions.  For more information refer to the Article entitled “How do I Use or Personalise my Transaction Browser.

The transaction browser, in this instance, will only select those transactions relating to the particular Bank Account you’ve chosen.  Here, in the Transaction Browser, you can click on any of the blue highlighted displayed items in order to “drill down” and examine the source of the transaction (e.g. Customer or Supplier (Vendor) Account) or its allocation against other transactions in the system and also to view its opposing posting to the General Ledger. Using the “Select an action” drop down you can also Print or Re-print Remittances, Reverse transactions, and some other actions.

By clicking on the “Edit” field you can also undertake several corrective actions from within the transaction browser which are detailed in the Article entitled “How do I Amend, Correct, Reverse or Delete a Transaction?”.

Alternatively, you can go to the General Ledger Menu Tab and choose the “Add/Edit GL Accounts” option to examine the transactions posted against the GL Account Code that you set up for this particular Bank Account which will also facilitate viewing, examination and correction. 

Finally, you can attach paperwork to the Bank Account or any of the Bank Account Transactions by clicking on the “Paperclip” symbol.  See “How do I attach Notes and Images to a Document?” for more detailed information. 

5.     Using Templates for Standing Orders, Direct Debits, etc:

In your live Bank Account you will also have set up Standing Orders for regular Bill Payments for items such as Rent, Rates, Web Hosting, etc. which may not go through the Creditors (AP) payment system.  You may also have Direct Debits for regular receipts which don’t go through the Debtors ledger.  These types of Receipts and Payments can be set up in the system as Journal Debits or Credits using the “Template” facility in Bank Journal entry;

You can create several different templates for differing purposes.  Just prepare the Bank Journal as you would normally and enter a Template Name in the Drop Down Box at the bottom left of this window and then click on “Save”.  You can then “Process” this journal now or later.  Every month, or periodically, you can recall these “Saved” templates, add to them or modify them if necessary, and re-use them (having changed the dates) to post all of these transactions again with their new dates.

6.     Dealing with Company Credit Cards:

Set up your Company Credit Card as a Bank with its own General Ledger Control Account.  When the Credit Card Statement arrives, use the Bank Credit Journal program to record the expenditure, item by item, against the various General Ledger Expense Codes (and coding any personal expenditure to the relevant employee’s “drawings” account).   When you pay the Credit Card Company use a Bank Credit Journal to post the payment from the relevant Bank’s General Ledger Account to the Credit Card General Ledger Account.

7.     Deleting Bank Accounts:

You can also delete a Bank Account provided that there are no related transaction records in the system or its not a Default bank account against any Customer or Supplier (Vendor). Click on the “A/C Details” in the “Account Code & Name” section, as highlighted in Red on the very first screen  at the top of this Article;