Hello i have possibly set things up wrong as a newbie and could do with some help please;
My chart of accounts has two incomes:
1.Auto banked card sales (as seen on bank statement)
2. Cash sales (as seen as cash deposits banked weekly, the cash banked is cash till takings minus any cash spends put through expenses)
I created a bank account to record 1. and a cash account to record 2.
I dont understand why my cash on hand as shown in the balance sheet keeps going up and up, to my way of thinking it should zero out?
i.e. cash taken minus cash spent, which i input as cash sales should be the equivalent to cash banked.
Surely as soon as i record the weekly cash banking in my income column from the cash account it should reduce not go up?
I have read the guides but there is clearly something fundamental im not getting!
Have you read Transfer money between bank and cash accounts which explains how to record the cash banked from the till to the bank account?
I haven’t but to be honest I don’t understand why if I enter a receive money input into bank account (from cash account), why the cash on hand balance doesn’t decrease? Anyway I will have a read.
Manager doesn’t work like that. There is a specific Tab for transfers of money from bank/cash accounts to bank/cash accounts.
The Receive Money is to record money received by the business from outside the business. Transferring money from the cash account to your bank account is not a reception of money from outside the business.
Oh ok, thanks for the reply BTW. Even with that knowledge I’m still concerned my chart of accounts is fundamentally flawed due to my lack of understanding but I will have a play and see if I can make sense of it
one quick question joe if i may im not at the stage of importing bank statements but manually entering stuff. So the bank statement in terms of in goings shows my weekly cash bankings and automated card sale payments, are you saying i have to manually enter this banking as cash received (bank account…receive money) but also duplicate this by showing an inter account transfer from the cash account?
Money received by your company from outside sources must be entered by one of two methods:
- A bank or cash transaction, entered manually, of the Receive money type. The receipt must be posted to the bank or cash account where it was received.
- An imported bank statement.
You cannot do both for the same transaction(s) or you will have duplicates you must delete. Read Manager Cloud and Manager Cloud.
Receiving money in your bank account does not automatically reduce money in your cash account. Manager has no way of knowing where that money came from. That is why there are inter account transfers. They give Manager information on both the spend from the cash account and the receipt into the bank account. Read Manager Cloud.
As for your chart of accounts, nothing you’ve written suggests it is wrong. But there are other methods of categorization you might find more informative, such as type of product or service, rather than method of payment. There are many good accounting educational sites on the internet that can help you design a chart of accounts. Also, see this Guide: Manager Cloud.
Thanks for the comprehensive answer