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Free Accounting Software Forum - More than one bank account

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23/03/2012
How to add bank accounts? If you have one cheque account and one savings account, how to set this up?
26/03/2012
Hi Cissy,

Free Accounting Software only allows one "Cash" account. This doesn't mean you cannot have a cheque and savings account. It just means that all cash received and paid goes into or out of the main "Cash" account.

So let's say you use your cheque account as the main account that all your cash receipts and payments to customers and suppliers is in. Use that as your "Cash" account.

Then set up another account called "Savings Account". When you receive money into or pay out of this account you need to enter a Journal. The Journal is exactly like a Cash Payment except that you need to enter an extra line to make it balance to zero. The extra line should have the tax code "Not Applicable" and the account "Savings Account".

An exception to the above is when you transfer money between your main "Cash" account and the "Savings Account". In this case you just use the normal Cash Received or Cash Payment pages and select the "Savings Account" in the account field.

Also it's important to consider the purpose of the bank account rather than what it is called. In Free Accounting Software the "Cash" account is your main operating account.

Regards,

Glen
 

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