How to set up a new bank account in Small Business Accounting (898563)


The information in this article applies to:

  • Microsoft Office Small Business Accounting 2006
  • Microsoft Office Small Business Management Edition 2006

INTRODUCTION

Before you set up a new bank account, you must have a copy of your most recent bank statement. You use the ending balance from your most recent bank statement as the starting balance of the bank account in Microsoft Office Small Business Accounting. Then, you enter outstanding checks, deposits, transfers, bank fees, and interest income so that Small Business Accounting can handle future reconciliations.

MORE INFORMATION

Create a new bank account

  1. On the Banking menu, click New Bank Account.
  2. If you are using account numbers, type the General Ledger account number for this bank account in the Account no box.
  3. In the Account name box, type a name for this bank account.
  4. In the Balance box, type the ending balance from your most recent bank statement.
  5. In the Cash Flow category drop-down list, select Financing, Investing, or Operating.
  6. In the Bank name box, type or select the name of your financial institution.

    Note Not all financial institutions are available for online banking. To view a list of available banks, follow these steps:
    1. On the Banking menu, point to Banking Services, and then click Services Overview. A Web page opens.
    2. On the Web page, click Bank Online on the left side of the page, and then click Compatible Banks.
  7. In the Bank account type list, click Checking, Saving, or Money Market.
  8. In the Bank account no box, type the account number from the selected financial institution.
  9. In the Comments box, type any additional information about this account.
  10. Click Save and Close.
When you enter a balance, your bank account is debited (increased) and the Opening Balances system account is credited (decreased).

Enter outstanding checks

  1. On the Banking menu, click Account Register.
  2. In the Bank account name box, add or click an appropriate bank account.
  3. On the Actions menu, click New Transaction.
  4. Make sure that the Write Check option is selected, and then click OK.
  5. Type the check number and the check date.
  6. In the Pay to box, click the vendor, the customer, or the employee to whom the check was written.
  7. Type the amount of the check.
  8. In the Items and expenses area, click the accounts that were paid with the check or the items that were purchased with the check. The accounts that you select will be debited when the check is saved.

    Note If a vendor or a customer is selected in the Pay to box, you do not have to select anything in the Items and expenses area. However, this behavior will affect the General Ledger. If the check was written to a vendor and you do not select an account or an item, the Accounts Payable account will be debited when the check is saved. If the check was written to a customer and you do not select an account or an item, the Accounts Receivable account will be debited when the check is saved. You must know how this behavior will affect the General Ledger before you enter and save the check.
  9. Click Save and Close.
  10. Repeat steps 3 through 9 for all outstanding checks.
Note If line items are selected in the Items and expenses area, the total line amount must match the check amount before you can save the check.

Enter outstanding deposits

  1. On the Banking menu, click Account Register.
  2. In the Bank account name box, click the appropriate bank account.
  3. On the Actions menu, click New Transaction.
  4. In the Select Transaction dialog box, click Make Other Deposit, and then click OK.
  5. Select the date of the deposit.
  6. In the Charge to list, use one of the following procedures:
    • Click an existing account that will offset the bank account.
    • Click Add a new account to add an account that will offset the bank account.
    This account will be credited when the deposit is saved.
  7. Type the amount of the deposit.
  8. Type a memo, if applicable.
  9. Click OK.
  10. Repeat steps 3 through 9 for all outstanding deposits.

Enter outstanding transfers

  1. On the Banking menu, click Account Register.
  2. In the Bank account name box, click the appropriate bank account.
  3. On the Actions menu, click New Transaction.
  4. Click Transfer Funds, and then click OK.
  5. Select the date of the deposit.
  6. In the Transfer from area, select the account name from which the funds were transferred.
  7. In the Transfer to area, select the account name to which the funds were transferred.
  8. In the Transfer from area, type a memo, if applicable.
  9. In the Transfer to area, type the amount of the transfer.
  10. Click Transfer.
  11. Repeat steps 3 through 9 for all outstanding transfers.

Enter outstanding bank fees

  1. On the Banking menu, click Account Register.
  2. In the Bank account name box, click the appropriate bank account.
  3. On the Actions menu, click New Transaction.
  4. Select Enter Bank Fee, and then click OK.
  5. Select the date of the bank fee.
  6. In the Charge to list, use one of the following procedures:
    • Click an existing account that will offset the bank account.
    • Click Add a new account to add an account that will offset the bank account.
    This account will be debited when the bank fee is saved.
  7. Type the amount of the bank fee.
  8. Type a memo, if applicable.
  9. Click OK.
  10. Repeat steps 3 through 9 for all outstanding bank fees.

Enter outstanding interest income

  1. On the Banking menu, click Account Register.
  2. In the Bank account name box, click the appropriate bank account.
  3. On the Actions menu, click New Transaction.
  4. Click Enter Interest Income, and then click OK.
  5. Select the date of the interest income transaction.
  6. In the Income Account list, use one of the following procedures:
    • Click an existing account that will offset the bank account.
    • Click Add a new account to add an account that will offset the bank account.
    This account will be credited when the interest income transaction is saved.
  7. Type the amount of the interest income transaction.
  8. Type a memo, if applicable.
  9. Click OK.
  10. Repeat steps 3 through 9 for all outstanding bank fees.
Modification Type:MinorLast Reviewed:8/10/2005
Keywords:kbhowto KB898563 kbAudEndUser
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