Bank Transactions

BANK TRANSACTION BASICS
       When to Use | Bank Transaction Basics | Transaction menus | Bank Reports

BANK TRANSACTION WINDOW
       Bank Account Field | Transaction Types | Reconcile Field
       Browser Controls | Running Total | Flag Button | Printer Flag | Form View

TYPES OF BANK TRANSACTIONS
       Bank Checks | Bank Payments | Bank Deposits | Bank Transfers

TYPES OF PAYMENTS
       Bank Fees | Direct Purchases | Payroll Breakdowns | Purchase Breakdowns
       Instant Purchases | Payments On Account | Transaction References

TYPES OF DEPOSITS
       Bank Credits | On Account Deposits | Payment Breakdowns
       Transaction References | Deposits on Account

BANK TRANSACTION RECORDS
       Entering Records | Creating from Chart of Accounts
       Changing Records | Deleting Records | Voiding Records
       Finding Records | Sorting Records | Fixing Mistakes

BANKING ACTIONS & SITUATIONS
       Bank Fees | Bounced Checks | Credit and Debit Cards | Current Balance
       Depositing Funds | Direct Purchases | Interest | Merchant Credit Cards | Paying Bills
       Reconciling | Running Total | Starting Balance | Stopped Payments

WEBSITE INFO LINKS
       Accounting Software

RELATED TOPICS
       Cash Accounts | Checking Accounts | Credit Card Accounts | Escrow Accounts
       Investment Accounts | Loan Accounts | Savings Accounts

When to Use Bank Transactions

Use Bank Transactions whenever you need to add or subtract money in your bank accounts-- which are cash, checking, credit card, escrow, investment, loan and savings accounts.

You can add money with Bank Deposits or Bank Transfers In.

You can take money out with Bank Checks, Bank Payments or Bank Transfers Out.

ACCOUNTING NOTE-- Bank Transactions handle all of your  cash expenses and cash income.  Enter your accrual expenses with Labor Hours, Material Purchases, Subcontractor Costs and Other Costs, and your accrual income with Billing Records and Sales.  For reports like the Income Statement, you can see either cash accounting, accrual accounting, or both.

Transaction Menus

Goldenseal includes seven menu commands that show bank transactions-- they're all in the Bank menu.

Choose Cash Transactions, Checking Transactions, Credit Card Transactions, Escrow Transactions, Investment Transactions, Loan Transactions or Savings Transactions to enter each type of financial transactions.

There are two ways to view each type of bank transactions-- one account at a time, or all at once.

• To view transactions for just one checking account, click on the Checking Transactions menu, then choose a checking account from the submenu.
• To view all checking transactions at once, click on the Checking Transactions menu, then choose All Accounts from the bottom of the submenu. You'll see all checking transactions for all checking accounts.

NOTE-- You can only have one Checking Transaction window open at a time. If you already have a window open for Checking Transactions, you'll need to close it first before you can open the window for a different account.

Bank Account Field

If you are viewing transactions for a specific bank account, it will be displayed here. If you are viewing all accounts, then use the clairvoyant field to enter a bank account.

NOTE-- To avoid problems with check number series and running totals, Goldenseal only allows you to change the bank account in the last bank transaction record.

Transaction Type

To switch transaction types, choose a new type from the Transaction popup field near the top of the window.

The five transaction types are:

• Check-- A payment made by a sequential check. Available for checking, escrow and loan transactions only.
• Deposit-- Money paid into the account when received from a job account or a cost account.
• Payment-- Money paid out to a job account or a cost account.
• Transfer In-- Money moved into this account from another bank account, or money received from the bank holding this account.
• Transfer Out-- Money moved out of this account into another bank account, or money paid to the bank holding this account.

Reconcile Field

When a transaction appears on your bank statement, enter a value into the Reconcile field. After you have entered all items, use the Reconcile command to check the computer balance against the bank statement.

Running Totals

If the running total is positive, it means you have money in the account. If it is negative, it means the bank is storing negative currency for you.

HINT-- Negative currency is red, not green, and it has pictures of bad former presidents instead of good ones.

Bank Fees

Enter bank fees as a Transfer Out.

You can charge bank fees against an Overhead account or any other account for job costs.

Bounced Checks

If a check that you write bounces, change the status of the Bank Check transaction to Bounced.  Goldenseal will automatically cancel the payment.

If a check that you deposited bounces, you'll need to cancel the Bank Deposit transaction.  How you do that depends on how the deposit was entered.

• If it's in a payment breakdown, turn off the checkbox for the item in the breakdown table.  When you close the transaction, Goldenseal will ask you if you're sure you want to remove the breakdown item.  Click OK.  Goldenseal will remove the Paid status from the transaction that was paid for by the bounced check.
• If the deposit has no breakdown and covers just the bounced check, change its status to Bounced.

Breakdown Tables

Use breakdown tables to include several items in a single bank transaction.

You can include the following breakdowns in Bank Checks or Bank Payments:
     Category-- Itemize direct purchases by cost category.
     Item-- Itemize direct purchases with specific Cost Items.
     Payroll-- Itemize payments to employees.
     Purchase-- Itemize payments to material suppliers or subcontractors.

You can include the following breakdown in Bank Deposits:
     Payment-- Itemize income from any source.

HINT-- To save time, use the Pay Bills to write checks, and the Deposit Funds command to make deposits. They'll automatically create bank transactions with breakdowns for the items that are covered.

Category Breakdowns

Use Category breakdowns to enter direct purchases in Bank Checks or Bank Payments.  A direct purchase enters an expense, just like a Material Purchase transaction.

A category breakdown lets you type in a brief description for each item.

For more about direct purchases, click here.

Credit and Debit Cards

A credit card usually has a negative balance.  It has its own running total balance, even if it's issued by a local bank. Create a Credit Card account for it.

A debit card draws on money in a checking account or savings account. Create a Checking Account or Savings Account for it.  If the card draws on an account that you use for other things, you don't need to create a separate account for it at all.

HINT-- Create a separate account for a debit card if it shows its own balance on your bank statement.  If it subtracts from your regular checking balance, don't create a separate account for it.

Current Balance

To see the current balance in an account, scroll to the last Bank Transaction record, or check the Current Balance field in the bank account.

HINT-- To open the bank account choose Main Account from the view menu, our double-click on the Account clairvoyant field at the top of the bank transaction window.

Of course your actual bank balance may be different, since transactions usually don't clear in the same order as they are entered.

Deposits On Account

When a customer pays you in advance before items are due, you can credit it 'on account'. Goldenseal will deduct it the next time you bill the customer with the Billing command.

To enter a payment on account, follow these steps:

1. Choose Checking Transactions from the Bank menu, then choose the account you'd like to use for the transaction.
2. Click the New button.
3. Enter Deposit into the Type field near the top of the window.
4. Enter the customer info and the amount the are paying.
5. Choose Received On Account in the Transaction Paid field.

Direct Purchases

You can enter a purchase directly into a bank transaction.

Purchases entered directly into a bank transaction can be difficult to find later, especially if you don't remember how you paid for the item.
It's usually better to enter an instant purchase in a Material Purchase, Subcontractor Cost or Other Cost transaction, instead.

HINT-- To forbid direct purchases, choose Preferences from the Options menu,  then choose Purchases from the submenu. Turn off the Allow Direct Bank Purchases option in the Preferences window.

To make a direct purchase with a check, follow these steps:

1. Choose Checking Transactions from the Bank menu, and choose an account from the submenu.
2. Click the New button.
3. Enter Check into the Transaction field at the top center of the window.
4. Choose Category or Item from the Breakdown popup menu at left center. HINT-- Don't use a Purchase breakdown. That is for purchases that have already been entered as separate expense transactions.
5. Enter details for the purchase.

1. Choose Credit Card Transactions from the Bank menu, and choose an account from the submenu
2. Click the New button.
3. Enter Payment into the Transaction field at the top center of the window.
4. Choose Category or Item from the Breakdown popup menu at left center.
5. Enter details for the purchase.

1. Choose Cash Transactions from the Bank menu, and choose an account from the submenu.
2. Click the New button.
3. Enter Payment into the Transaction field at the top center of the window.
4. Choose Category or Item from the Breakdown popup menu at left center.
5. Enter details for the purchase.

When you enter direct purchases, Goldenseal uses them for job costs, just the same as a regular expense.

Instant Purchases

1. Choose Material Purchases from the Costs menu.
2. Click the New button, or choose New Record from the Edit menu.
3. Enter details for the purchase.
4. Enter Cash, Check or Credit Card into the Payment Method field.
5. When you complete the transaction, Goldenseal will automatically create a bank transaction to pay for the purchase.

ACCOUNTING NOTE-- In an instant purchase, the Material Purchase handles the accrual accounting (and also job costs and time and materials billing).  The bank transaction handles the cash accounting.  Using instant purchases lets you keep all your purchases in one place, which is convenient if you ever need to locate a prior transaction.

Interest

You can charge interest expenses against an Overhead account or any other account for job costs.

Item Breakdowns

Use Item breakdowns to enter direct purchases in Bank Checks or Bank Payments.  A direct purchase enters an expense, just like a Material Purchase transaction.

An item breakdown shows Cost Items.  Using an item breakdown allows you to update your material unit prices automatically.

For more about direct purchases, click here.

Merchant Credit Cards

If you accept credit card payments, follow these steps:

1. Set up a Checking Account or Savings Account where you'll deposit funds from the credit card terminal.  If you deposit them into your regular checking account, you don't need a separate account.
2. Set up a Payment Method for each type of credit card that you accept.
3. Enter Billing Records and Sales transactions as normal.
4. Use the Deposit Funds command to deposit credit card sales into your bank account, whenever you close the terminal.

Payment Breakdowns

Use a Payment breakdown to deposit some or all of the sales for a customer, or billing records for a project.

When you use the Deposit Funds command, Goldenseal automatically creates a payment breakdown for each account.

HINT-- To see any transaction listed in the breakdown table, double-click on any non-editable cell in the transaction's row.

You can also deposit some or all of the payment items from one customer, directly from a bank transaction. To do so, follow these steps:

1. Choose Checking Transactions from the Bank menu, then choose the account you'd like to use for the transaction.
2. Click the New button.
3. Enter Deposit into the Type field near the top of the window.
4. Enter Customer or Project into the Received From popup menu.
5. Enter the account making the payment.
6. Enter Payment into the Breakdown popup menu.
7. Goldenseal shows a breakdown table that automatically includes all unpaid transactions from the selected account.
8. Turn on the check mark in the Pay column for each item that you want to deposit now.
9. You can also change the amount in the Payment column, to deposit just part of a transaction.

If you are not including a payment item in this deposit, turn off the checkmark in the first column.

NOTE-- Goldenseal will remove any unmarked items after you save the record.

Payments On Account

To enter a payment on account, follow these steps:

1. Choose Checking Transactions from the Bank menu, then choose the account you'd like to use for the transaction.
2. Click the New button.
3. Enter Bank Check or Payment into the Type field near the top of the window.
4. Enter the vendor info and the amount you're paying.
5. Choose Paid On Account in the Transaction Paid field.

Payroll Breakdowns

Use a Payroll breakdown to pay some or all of the Payroll Records for an Employee.

When you use the Write Payroll command, Goldenseal automatically creates a payroll breakdown for each employee.

HINT-- To see any transaction listed in the breakdown table, double-click on any non-editable cell in the transaction's row.

You can also pay for some or all of the payroll records from one employee, directly from a bank transaction. To do so, follow these steps:

1. Choose Checking Transactions from the Bank menu, then choose the account you'd like to use for the transaction.
2. Click the New button.
3. Enter Bank Check into the Type field near the top of the window.
4. Enter Employee as the Payee Type.
5. Enter the employee you are paying.
6. Enter Payroll into the Breakdown popup menu.
7. Goldenseal shows a breakdown table that automatically includes all unpaid Payroll Records for the selected account.
8. Turn on the check mark in the Pay column for each item that you want to pay now.

If you are not including a payroll item, turn off the checkmark in the first column.

NOTE-- Goldenseal will remove any unmarked items after you save the record.

Purchase Breakdowns

When you use the Pay Bills command, Goldenseal automatically creates a purchase breakdown for each vendor.

HINT-- To see any transaction listed in the breakdown table, double-click on any non-editable cell in the transaction's row.

You can also pay for some or all of the purchases from one vendor, directly from a bank transaction. To do so, follow these steps:

1. Choose Checking Transactions from the Bank menu, then choose the account you'd like to use for the transaction.
2. Click the New button.
3. Enter Bank Check into the Type field near the top of the window.
4. Enter the payee type.
5. Enter the account you are paying.
6. Enter Purchase into the Breakdown popup menu.
7. Goldenseal shows a breakdown table that automatically includes all unpaid transactions for the selected account.
8. Turn on the check mark in the Pay column for each item that you want to pay now.
9. You can also change the amount in the Payment column, to pay for just part of a transaction.

If you are not including a purchase item in this payment, turn off the checkmark in the first column.

NOTE-- Goldenseal will remove any unmarked items after you save the record.

Reconciling

Creating Reconcile Periods

1. Choose Other Lists from the Options menu, then choose Reconcile Periods from the submenu.
2. Click the New button.
3. Type in a name for the period. You can use the name of the month and year, or any other text that makes sense to you.

Marking Cleared Transactions

1. Choose Checking Transactions from the Bank menu, then choose the checking account name from the submenu.
2. Browse through the bank records. If the statement shows that a particular transaction has cleared, enter the current reconcile period into the Reconcile field.  If the statement has a transaction that is not in the computer, enter it and fill in the reconcile period immediately.
3. Repeat step 2 for each transaction that has cleared.

HINT-- Use the Find command to locate specific transactions.

Reconciling

1. Choose Reconcile from the Bank menu.
2. Enter the reconcile period that you used for this period, then click OK.
3. Check the computer balances against the bank statement.

Finding Reconcile Errors

If not, you'll need to get your computer records to match the bank records.

HINT-- It's a good idea to faithfully reconcile to the penny, every month. If you have a backlog, start at the earliest statement and get that to reconcile, then do each following period in sequence. Make sure each statement is correct before moving to the next one.

If you are reconciling an account for the first time and were not sure of your starting balance when you first started with Turtle Accountant, you can reconcile the account by adjusting the starting balance to match the current statement.

If you know the starting balance is correct, then any difference between the bank statement and your computer records is due to at least one error-- probably a missing transaction, a data entry error, or (rarely) a bank error.

To catch errors, follow these steps:

1. Open the transactions list for the account you are reconciling.
2. Choose Find from the Edit menu.
3. Enter the current reconcile period into the Reconcile field.
4. Click Find to find all transactions that cleared on that statement.
5. Scroll through the records, and double-check them against the bank statement.

HINT-- You can also view all your transactions in one list by choosing Banking from the Reports menu, and choosing Checking from the submenu.

Reconciling Past Periods

1. Start with the first unreconciled period.
2. Mark all transactions that cleared during that period.
3. Use the reconcile command to check for the balance at that period.
4. If it doesn't match the statement balance, find any errors, or adjust the account's Starting Balance.
5. When the first period is reconciled, repeat steps 1 to 4 for each following period.

Uncleared Transactions

To find items that have not yet appeared on the bank statement, follow these steps:

1. Choose Find from the Edit menu.
2. Click on the popup button next to the Statement field, and choose Blank Items from the bottom of the menu.
3. Click the Find button.  You'll see all bank transactions that have not yet cleared.

HINT-- Another way to find accidental duplicates is to use the Find Duplicates command.

Reconcile Hints & Tricks

More hints for tracking down errors:

• If the error amount is divisible by 9, suspect a digit transposition in one of your data entry records.
• If the difference is off by an just one digit (e.g. 1.00 or .04), suspect a typo in one digit.
• Use the Find command to look for transactions with the total amount equal to the difference.
• If you just can't find an error, it often helps to take a break and try again when you are fresher.
• If you are still baffled, have someone else go through the records, or check in reverse order of when you first reconciled.

Reports

To see a list of all checking transactions, choose Banking from the Reports menu, then choose Checking Transactions from the submenu.

Other commands in the Banking menu will show you other bank transactions.

HINT-- If you double-click on a checking transaction in the report, you'll see more details for that transaction.

Starting Balance

The Running Total amount in your bank transactions starts with the Starting Balance from the bank account.

Stopped Payments

If a check that you deposited has been stopped, you'll need to cancel the Bank Deposit transaction.  How you do that depends on how the deposit was entered.

• If it's in a payment breakdown, turn off the checkbox for the item in the breakdown table.  When you close the transaction, Goldenseal will ask you if you're sure you want to remove the breakdown item.  Click OK.  Goldenseal will remove the Paid status from the transaction that was paid for by the bounced check.
• If the deposit has no breakdown and covers just the stopped check, change its status to Stopped.

Transaction References

Use the Transaction Paid fields to enter a bank transaction that covers a single purchase or deposit.

If you enter an expense transaction as an instant purchase, Goldenseal automatically creates a bank check or bank payment with that transaction as the Transaction Paid.

You can also use the Transaction Paid field yourself to cover a single transaction.

For example, to write a check for one unpaid material purchase, follow these steps:

1. Choose Checking Transactions from the Bank menu, then choose the account you'd like to use from the submenu.
2. Click the New button.
3. Enter Bank Check into the Type field near the top of the window.
4. Enter Material as the Payee Type.
5. Enter a supplier into the Pay To field.
6. In the Transaction Paid field, enter Material Purchase.
7. The Reference field shows all unpaid purchases for the account you have entered. Choose the transaction that you want to pay.
8. Goldenseal enters the transaction amount automatically.

HINT-- If no items are showing, then there are no unpaid purchases from the selected supplier.   To see the transaction that this payment covers, choose Detail Transaction from the View menu.

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