Module 4: Bank Accounts

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Contents
Add a Bank Account............................................................................................... 3
 Using the Bank Batch Input .................................................................................... 5
 Check my Bank Statement ..................................................................................... 8
 Locking Statements.............................................................................................. 11
 Editing and Deleting an entry.............................................................................. 11
 Transferring Money Between Bank Accounts....................................................... 12


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Add a Bank Account
Liquid comes with one Bank Account in its initial configuration. If you need to add an additional bank account, follow the instructions below. Before an additional bank account can be added, the new bank account will need its own Nominal Code. If this has not been created, see ‘Add a New Nominal’ in the Help menu. Select the Banking tab at the top of the screen and then choose the Bank Maintain menu option.

At the bottom of your existing bank accounts on the left-hand side, select the New button.

A blank form will appear, which you now need to complete.

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Notes on completing the form: Order - The order box dictates where the bank account will be displayed in relation to the other accounts. Description – Description is your description of the account e.g. deposit account or petty cash. Sort Code – The sort code of the account. Acct No – The account number of the bank account. Roll No – Some bank accounts have roll numbers instead of account numbers. Bank Name – Name of bank. Bank Address – The address of your bank account. Nominal Code – This is the nominal code specifically for this bank account. If you have not created one, please see ‘Creating a new Nominal Code’. Ensure that your new nominal code is in the current assets group when setting it up. Currency Code – This box will only show if you have our advanced multicurrency module enabled. Set it to the base currency of your bank account. Statement Frequency – This is where you tell the system the frequency that you wish to reconcile the bank account. Reconciling means checking the bank account on the system against your bank statement to ensure the two align. For example, if you receive a paper bank statement monthly, set the pull down to monthly. Statement Usual Day – If you have set the statement frequency to monthly, you can then specify what date of the month your statement is to. For example, if your statement shows all transactions up to the 16th of the month, put 16 in the box. Cash Payments – Tick this box if you want to use the bank account for cash payments e.g. the till in a shop. Once you have completed the form, press Save and your bank account will be created.

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Using the Bank Batch Input
This help document will show you how to input bank payments and bank receipts through the batch input process. The batch input has been designed to speed up the entry of bank transactions. To get there, press the Banking tab then the Batch button.

Choose whether you want to add a Bank receipt or a Bank payment.

Enter the date of the bank payment or receipt in the Date box.

Select the desired bank account from the drop down Bank box.

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In the Ref box, enter any reference details you may have, for example a cheque number. In the Detail box, put a description of the transaction.

Enter the gross amount in the Gross box.

In the VC box, select the VAT code from the drop down options. The VAT will automatically be calculated after the gross amount and VC have been selected.

Select the nominal code you wish to attribute it to in the Nominal box.

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Press the Save button. This will show the transaction underneath, along with any others entries yet to be completed.

You can select to view the entries made by the current user or all users if you have more than one. Simply choose from the drop down menu.

If you wish to delete a transaction, press the Delete button next to the line you wish to delete. To edit a transaction, press Select next to the line you wish to change and then change the details above. Press Save to confirm the changes.

After you have saved the transaction, the details will remain in the boxes above. This will allow you to add numerous similar entries quickly. You can overwrite any of the boxes by selecting them and entering new details. Press Post to finalise any transactions on this screen. They will stay on the system until you are ready to post them.

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Check my Bank Statement
The bank reconciliation ensures that you have recorded all items in your books that appear on the bank statement. This help document will also show you how to add transactions that appear on your bank statement that are not on Liquid Accounts. Select the Banking menu tab at the top of the screen and then choose the Check My Statements menu option.

The following screen will now show:

Notes on the completion of this form: • • Select the correct year-end and bank account you wish to reconcile. In the date to, select the date you are doing the reconciliation to. For example if your bank statement has transactions to 31 Mar 2009, select that date. The date from will then default to the month preceding the date to, though you can override this.

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The records to show menu will default to a maximum of 600 items (otherwise any more data could cause your browser to crash or take a long time to respond). This can be reduced if you are dealing with large amounts of data on a daily basis. To show all transactions for the period, ensure Show reconciled transactions is checked. Otherwise only those transactions not yet reconciled will be shown. Click on the Transactions button.

TIP: It is customary to select the end of the month as the date to reconcile to, as this will then ensure that your management accounts are more accurate. It is important you reconcile at your year-end date, as this ensures that your accountant will get the correct information.

The screen will now change and show you the transactions within the date range specified, plus any transactions prior to the date range that have not already been reconciled.

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Tick the Rec box next to each item you wish to reconcile. The transactions will be shown in three different colours: Red – Are the transactions prior to the date range that have not yet been reconciled Green – Are transactions within the date range that have already been reconciled Black – Are within the date range and have not been reconciled yet The totals, displayed at the top, will change as the items are reconciled – you are aiming for the Reconciled balance to be the same as the balance on your bank statement. When you have reconciled the individual transactions and the Reconciled balance equals the balance on your bank statement you have successfully reconciled your bank account.

TIP: ALWAYS reconcile FROM the statement TO the system, the Reconciled balance can then be regularly checked to see that it agrees with the statement as you go, rather than waiting until you have ticked all items, and find you have a difference.

If the entry on the bank statement is made up of several transactions on the system (for example if you have paid three cheques in together), they can be checked by clicking on the Calc box next to each item. The following pop-up box will appear.

You can select and unselect any transaction in the calc column until you find the correct transactions. Once you are happy that these are correct you can press Apply and they will reconcile.

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Locking Statements
Once you are happy with the reconciled statement – the reconciled balance being equal to the last balance on the statement – you can ‘lock’ the statement by clicking on Lock statement. This is entirely optional; you can unlock at any time, but it will serve as a warning to anybody else entering the reconciliation not to alter the figures.

Editing and Deleting an entry
If, when checking the statement, an item is found to have been entered incorrectly, it can be edited by clicking on the Edit to the left of the transaction. You cannot edit an item if it is ticked as reconciled.

To delete an entry, click on Edit, and then select the Delete button. Please note that an entry cannot be deleted if it has been reconciled. Also, in the case of sales receipts and purchase payments, they cannot be deleted if they have been allocated against an invoice. If you need to return to the beginning of the bank reconciliation process i.e. the initial screen, clicking on Header will take you back to the first screen.

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Transferring Money Between Bank Accounts
Press the Banking tab and then the Batch button.

Select a bank payment from the Type box.

Enter the Date. Then select the Bank account the money is being transferred FROM.

Enter the Ref (optional), Detail and Gross amount. Select NA as the VC (VAT code).

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In the Nominal box, enter the bank account that the money is being transferred TO.

Press Save. The transaction will be shown below. You can enter another one using the same method or press Post to finalise it.

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