#TipTuesday - ABA File Creation

Lucas

Bank Payments made easy?

Are you sick of manually entering bank transactions to pay employees? Well look no further by using an ABA file to send your employees pay cheques after creating a pay run.

An ABA file is used by all major Australian financial institutions to specify the payments to be made from your bank account to your employees. It's also the most common way for employers to pay employees using an ABA file generated by their payroll software.

How does this work?

In Reckon Accounts there has been the option to create an ABA file for years, which can be enabled and setup by doing the following steps.

We will need to setup the designated bank account in the Chart of Accounts (CoA) that will pay your employees:

1. Start by selecting Accountant ➡️ Chart of Accounts
2. Select the Bank Account ➡️ right click and Edit Account
3. Select Online Bank Details and enter the account details

Once, we have completed the above we will now add the account details for the employees:

1. Employee Centre ➡️ Select your Employee
2. Change tabs ➡️ Payroll and Compensation Info
3. Pay Method selected as Bank (Online)
4. Click on Direct Deposit
5. Enter bank details for Employee

Now that we have created an Online bank account and entered the details for our employees, we can now go to Online Banking to generate an ABA file:

1. Click on the Online Banking icon
2. Select your Financial Institution
3. Select your Process Date ➡️ Enter a Payment Description
4. Tick Employees to be included in ABA file
5. Create ABA File

You are now able to use that ABA file to upload to your bank and process a batch payment without having to do the tedious manual entry for each employee. Hopefully this increases the efficiency of your workflow on pay day and to checkout other awesome features in Reckon Accounts.

Ann_10524711

Hello Lucas

Thank you for this tip. I am keen to give it a go 👍️

Could you also post something similar for getting bank transactions into Reckon (accounts - Desktop). ATM we manually check off bank statement transactions to transactions in our Reckon file.

Thank you 🙂

Rav

Thanks @Ann_10524711! 🙂

We can definitely work something up for a future #TipTuesday post, stay tuned 🙌.
In the meantime, you might be interested in last week's #TipTuesday post from our awesome Community member @Kris_Williams on the topic of streamlining your bank reconciliations - #TipTuesday - Make your bank reconciliations easier 🧮