Bank Account Setup Tutorial

In this tutorial video with accompanying transcript, we guide you through the Bank Account Setup process using Clever Accounting software.

In this tutorial video with accompanying transcript, we guide you through the Bank Account Setup process using Clever Accounting software.

TranscriptBank accounts are the fulcrum of a business. All transactions that include cash have to go through a Bank Account or through the Cash Account. As these accounts are considered as a Current Asset, each one must have an entry in the Chart of Accounts.

As a default, Clever Accounting has already set a number of different accounts listed in the Chart of Accounts, however, it would be a good idea to edit these entries and give these accounts a better description related to the actual account. There must be one entry in the Chart of Accounts for each Bank Account held.

Before you start, make sure you have a list of all the accounts with the relevant information such as account no, type of account and bank name. Sort the accounts in an order of your preference.

For this example, we are going to have 4 bank accounts. Three of these accounts are held with the International Bank while the fourth account is held with the Merchants Bank. The accounts at the International Bank consist of one Checking (or Current) Account, one Savings or Deposit Account and one Credit Card Account. The other account held at the Merchants Bank is a Savings or Deposit Account. There is also a Petty Cash account.

International Bank           Current Account
International Bank           Savings Account
International Bank           Credit Card

Merchants Bank Savings Account

Bank Addresses:
International Bank                                         Merchants Bank
Reserves Boulevard                                       Centre Building
Atlantis                                                             MoneyTown
Gozo                                                                  Gozo

Log in to Clever Accounting and then select the Banking and General Ledger tab. Click on the Bank Accounts link and proceed to delete the existing Bank Accounts. We will re-enter these accounts with proper details for easier recognition later on.

Next click on the GL Accounts link and then select an account that refers to a bank account under the Current Assets section (in our case 1200) and click on Delete Account. Do the same for the other bank entries.

With the accounts removed we can now start to create the accounts with the information we have. Starting with the first one we enter 1200 for Account Code. In Account Name we enter a description for the first account as follows: International Bank – Current Account. We select CURRENT ASSETS for Account Group. Check again the entries and click Add Account.

Repeat as above for the other accounts.

We can now move on to create the Bank Accounts in the system. Click once again on Banking and General Ledger then click on Bank Accounts. We should only have the Petty Cash account listed. We will proceed to fill in the form on this page, with each account’s details and populate this page. First the Bank Account Name, then selecting the Account Type and also selecting to Bank Account GL Code to reference the account in the Chart of Accounts created earlier. We also notice that we have entries for the Bank Name, the Bank Account Number and the Bank Address.

It should be noted that if we choose Yes for the Default currency account the details of this account will be printed on each invoice, enabling clients to pay via bank transfer. In some countries the IBAN number and the BICC are required for this purpose. These can be entered in the Bank Account Number field.

As we finish the entries of the 4 accounts, we conclude the process of adding bank accounts. Thank you for your attention.

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