Hi - I’m trying to setup a bank account as the Operating account, so that the balance of that bank account matches the operating account. I have setup the bank account as a cash/cash equivalent and all transactions are processed through receipts/payments using that bank account.
What step have I missed?
Thanks for responding - I’m using the desktop version - is there a difference?
No, the procedures are the same in both versions
I’ve checked and I did follow that guide.
What I’m missing, is that when I run the Changes in equity report, I’m expecting to see the Operating account balance to be the same as the Bank account that is setup for Cash/Cash Equivs.
None of the receipts/payments in that Bank account appear in the transaction list for the Operating A/c. I would have expected them to be liked in some way?
The bank account balance appears in the Balance Sheet not the Changes in Equity Report. The Statement of Changes in Equity shows how the change in the equity section of the Balance Sheet of a company has come about. It shows the increase due to profit for the year. It also shows the decrease due to dividend payments during the year.
What exactly do you mean by “Operating account”?
There is no such account in Manager, nor is a commonly used accounting term
Do you mean Operating expenses, Operating profit, ….
Thanks all for your responses. Maybe I’ve confused the terminology here.
Basically I have 1 Bank account that is the “Operating A/c” all payments/receipts go through this account. It is setup as Cash/& equivs. There are 3 other bank accounts that contain “Reserves” - money allocated to specific projects that we draw on for those projects. They are setup as Control accounts.
So when I first created the business in manager.io I created the Operating A/c so that all the Reserves and bank accounts would balance. The Operating A/c had the same balance as the main bank a/c.
A previous google search suggested that I could link the Bank account transactions with the Operating A/c by selecting a Transfer Tab which I haven’t been able to find.
Anyway my Balance sheet now has this “Balance: Operating A/c” with a figure that doesn’t match the bank account. The bank account balance should show under Equity as that figure represents the money that we have left to spend.
You have to activate the Inter-Account Transfer in Customize
A Bank account is never part of Equity in a Balance Sheet - it is an Asset or a Liability (if overdrawn)
Thanks for your help with this. Yes I’m using the Inter Account Transfer but was hoping for something automatic. Based on your advice, I’ll have to rethink what I was trying to achieve.
As indicated by @Joe91 a bank account is never part of equity. You need to treat all bank accounts exactly the same, irrespective of their purpose. You can create a control account to group operating bank accounts and another control account to group bank accounts used to hold reserve funds but that may be going too far. You should only have two control accounts to separate bank accounts that are overdrawn with bank accounts that are not overdrawn.
I would not use the inbuilt inter-account transfer facility for transfers between bank accounts especially if you import your bank account transactions. Instead you can create a custom inter-account transfer account and through bank Payment & Receipt Rules allocate the outgoing and incoming transfers to this account so balance is always nil.
Brilliant - thanks for the tips! I’ll check that out and see about restructuring what I have to make the reports reflect the financial position better.
