We have a number of bank accounts, business & personal.
We are setting up to use the bank feeds however we often send invoices as well as sales receipts and not sure which is the best practice in which to set this up.
Should we direct all bank feeds to a single clearing account, OR to matching clearing accounts to then data match to outstanding invoices?
Bank ACC 1 has: Clearing ACC 1
Bank ACC 2 has: Clearing ACC 2
Thanks in advance
The first question I would ask is why you need multiple accounts. I can understand why, in my businesses which are NFPs that have rental income I make sure that I have a Rent account that all rental payments go into, that way if any payment in the rent account does not have an id/ref against them then I know that it is at least rent and nothing else.
I don't know your business but generally I would set up accounts by type, when you 'receive payments' that's when you can allocate to the correct bank account, don't think there is a need for clearing accounts
Thanks for your time.
We have business, personal & joint accounts & a savings ACC with separate banks, I want to connect each of them with the bank feeds.
I want to check each transaction off & add memos etc as I reconcile, however it's important that I allocate a sales receipt & invoice that I may have generated the month before.
I was reading in another thread that a lady has her bank feeds import to a clearing account then reconciles transactions to her transaction accs, reconciling invoices etc at that time.
I've been doing everything manually and want to automate the system, hence why I want to set it out correctly straight off the bat.
It's a reseller of ours and the sales vary and are paid on royalties, I raise the sales receipt when we're emailed the end of month sales stamenent from the reseller.
BankData is a system to automatically bring your transactions from your bank account into your accounting systems. You can bring in transactions from as many banks and bank accounts as you like. Each bank account will need a matching bank ledger account in your Book or Company file.
Reckon One will attempt to match a downloaded transaction to an existing entry. Then it will attempt to enter transactions according to existing Transaction Rules set up by the user. Transactions remaining require the user to allocate manually by entering it as a Payment/Receipt, a Transfer or to ignore it. You can create new Transaction Rules as you go.
In Reckon Accounts you need to choose whether to match the downloaded transaction to an existing entry, apply a Transaction Rule or enter manually.
Depending on how you have your Chart of Accounts set up and the way you choose to organise your business, there need not be a need for clearing accounts to handle downloaded transactions.
Foreign Currencies are handled in Reckon Accounts but not Reckon One; however you cannot import bank transactions in a foreign amount.
Hope this helps you understand the process.