Sweep Accounts

[smurphy]

How to I account for a “sweep account”. When our checking balance gets low we have a line of credit that will sweep funds into our current checking account. I am very new at book keeping and I’m not sure how to track this in the software.
I have the LINE OF CREDIT as a Liability (Long-term) but I’m not sure how to increase what we owe as money moves into our account.

I hope this makes sense.

Thank you! By the way I am really loving the flexibility of this software! Especially for me with very little accounting and book keeping experience/background.

[Tut]

Receive money in the bank account and select the line of credit liability account for the transaction. This is equivalent to debiting the bank account and crediting the liability account, which increases both balances. This cannot happen automatically, because there is no linkage between Manager and your bank account. But the transaction should show up if you import the bank statement; in that case, allocate to the liability account during that process. But don’t enter it and also import or you will duplicate the transaction.

By the way, despite its ease of use, Manager is no substitute for basic accounting knowledge. It is a good tool, but not an expert system. Have a look at http://www.accountingcoach.com, where you can learn just about everything you’ll ever need to know.

[smurphy]

Thank you so much!

I LOVE that website! It is helping me a lot!