We received two amounts of non repayable grants and the money is kept in separate ban accounts. What is the easiest way to enter the opening amounts into the bank accounts and then enter the disbursements as theses grants were received in 2019 and 2020 and we are now moving from spreadsheets to accounting software. Thanks
That depends - presumably you have set a Starting Date and will be loading up account balances as of the starting date?
If so, just load the two bank accounts at the same as the other bank accounts, no?
Everything will be entered manually before setting a start date, business began 2018
Sorry, I was not clear.
If your business is a new business and you are going to enter all transactions from the beginning of the business, there is no need to enter a Start Date. This is only used when migrating accounts from an existing business which has been running for some time before the migration date.
If you are entering all transaction of the business, then just enter the receipt of the money into the bank accounts. You can setup a liability account to hold the money on the Liability side of the Balance Sheet if you do not want to include it as income on the P & L
@noopykat, you’ve raised several issues in what probably seems to you like a simple question:
- Start date and starting balances together raise one. See these Guides:
Set start date | Manager
Enter starting balances | Manager
You only use either if you are migrating from a prior system, as @Joe91 said. The point is that people seldom re-enter all prior accounting transactions when adopting Manager. They set a start date (the date they begin using Manager) and set starting balances in the ongoing accounts to match the closing balances from the prior system. If you didn’t really have a system, you need to construct what those closing balances would have been.
- Recording the receipt of money into bank accounts is another issue. Money never magically comes out of the blue. It is received. So if you—for some reason—want to re-enter all your accounting history, you must receive the money into a bank account. See the Guide: Record a receipt | Manager. Since Manager is a double-entry system, you need to choose an appropriate account to post the receipt to. If you owe the grant money to a grantor (or the portion of it not dedicated to funded programs), that account will be a liability account, as @Joe91 mentioned. But if it is a general purpose donation, it will be posted to an income account. Depending on what your organization is and how it is organized, as well as your tax laws, that income may or may not be taxable. (Tax and financial accounting are two separate things.) Regardless, the debit to your bank account from the deposit must be balanced by a credit to some other account.
- Disbursements from these grants are recorded as either purchase invoices or payments, depending on whether you are buying something on credit terms or paying straight out. The purchases or expenditures could be posted to expense accounts. However, if the terms of the grant require you to account for such disbursements against the grant itself, you will post them to the liability account mentioned above.
- Finally, you mentioned entering things manually before setting a start date. Don’t do that. If you enter things prior to a start date, Manager ignores them unless they are invoices or expense claims. And then they are used only to set starting balances in control accounts, such as when an invoice has gone out prior to your start date, but the customer has not yet paid. This is explained in the Guide linked above.
If starting to use Manager after a business has begun trading, a “Start Date” is entered into Manager
The date entered is the date transaction records are entered into Manager and all prior transactions are summarised by entering starting balances into individual Manager accounts
The “Start date” in Manager / date from which transactions are entered into Manager; does not need to be the same as the date you stop entering data into your old accounting system. In practice some overlap is often used while gaining confidence with way Manager works. The overlap can be created by entering some historical data (such as from the start of the the last financial year) or entering data in both systems for awhile going forwards. What ever works for each business / user.