Before we can record incoming payments, deposits, or make checks, we must first add our business’ bank accounts. In this lesson, we’ll learn how to add bank accounts, credit cards, and loans in Cashflow.
Add Your Bank Accounts
To add a bank account,
Add a bank account
- In the main menu, we go to Bank, then click on Bank Accounts.
- In the Bank account list, click on the (+) Button,
- In the context menu, click on New Bank Account.
- In the General Account Information section, choose a Bank, Account Type, Currency, and type the Account Number, and Name or an Alias.
- In the Ledger Account section, you have the option to Create a New (a) account or Choose an Existing (b) account from the chart of accounts.
- If the account is a checking account, enable the checking account option and set the next check number.
- Enable the overdraft option if required.
[5a] Create a New Account option the system creates a new ledger account for this bank account.
[5b] Choose existing account option allows you to choose an existing ledger account in the chart of accounts.
Important: If you are not a bookkeeper, accountant, or do not understand how to do this, I highly recommend choosing the Create New option.
Bank Account Opening Balance
To add the opening balance while adding a bank account,
- Activate the Opening Balance option,
- Set the Balance Amount, Date, and choose an opening balance Ledger Account.
Set the Account’s balance at the current date or at the beginning of the accounting period.
Let’s look at two examples:
1) Opening Balance as of Today
In this example, we are adding a new bank account, and we are making an initial deposit or opening balance of $5,000 dollars with funds from another business bank account, as of today.
In this case, we add 5,000 dollars in the Balance field; in the Date field, we choose today’s date, and in the Account’s field, we choose the bank account from where we are providing the funds.
2) Opening Balance at the beginning of the accounting period
In this example, we have a bank account added at the beginning of my accounting period, with a balance of 5,000 dollars.
In this case, we add 5,000 dollars in the Balance field; in the Date field, we choose the balance date, which will be the last day of the previous accounting period, for example, December 31, and in Account, we choose the ledger account named Account for Opening Balances.
Once we complete all fields, we click Save.