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Free Accounting Software Forum - Bank Accounts

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22/10/2012
There only appears to be allowance for one bank account (or have I missed something). I am dealing with 4 separate bank accounts or divisions within one main account. Is this possible ?
24/10/2012
There are ways to handle separate bank accounts.

1. Use Divisions

If your organisation has 4 separate branches each with their own bank account, then 4 divisions would be the best way to set it up. You may even want separate divisions even when they use the same bank account, as it will allow you to report the profit and loss and balance sheet separately for each division.

When you post each transaction you select the appropriate division. On the cash worksheet you can then reconcile the bank account for each division separately. To do this, on the cash worksheet at the top of the page select your division and then click get cash worksheet.

2. Use a Normal Account

If your additional bank account is an investment account then just set up a an account called "Investment Account". Then when you transfer money from your main bank account into the investment account you can enter a cash payment and select the account: "Investment Account". When you transfer the money back it is a Cash Received entry. You can reconcile all accounts so you would reconcile this account the same way you reconcile you main bank account.

If you start to pay expenses directly from the investment account (bank fees), then enter a Journal to Dr Bank charges and Cr the investment account.

A Journal is just like a payment but for the last line you have to balance it to zero and select the account it's paid from. Some people just don't get journals and find it easier to process a Cash Received entry to move the funds to the main account and then and Cash Payment entry to record the payment, even though the funds don't actually go through the main bank account.

3. Use a Separate Organisation

This is appropriate where the additional bank account is a trust account.

Also you could do this where you have separate branches under the one ABN. The branch is the number after the slash on your Activity Statement. Although this would mean you have to consolidate the organisations when you do you tax return.
 

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