Bank Reconciliations for 2 Different Bank Accounts
I'm a little confused when reconsiling bank accounts within my company file.
I understand how to reconcilie etc, but how does it work when you attache bank transactions to an expense account for 2 different accounts.
So im working in my company file named AAA Cars (example) i have reconciled my bank statements for AAA Cars all is well. Now i have another bank account for my trading comapny Cars R Us (for example) so i go in and reconcile that bank statment also.
Everything matches perfectly. So my question is, i now have 2 bank accounts or 2 companies worth of expense in the one file. Should just the company file im working in AAA Cars in this instance only show their exspenses?????
I'm confused.......
Hi uplift1
In terms of reconciling accounts, you are reconciling what was occurred in real life. For example, if you have had a payment go through to that bank account for $100 you would need to record a transaction in AccountRight for $100 against that bank account.
If you are running two "companies" through the one company file with each side having their own bank account, it would depend on what bank account(s) the transactions went through in real life. For example, if the transaction went through the bank account for "ABC company" you would only need to record the transaction for that bank account, "ZXY Company" would not be touched.
On the expense side of things, it would depend on the set up of the company file. Ideally, you would be looking at recording the transaction to the relevant expense account for that business. If you have two "companies" set up within the one file then you might utilise an expense account for each "company" and thus select the required account on that transaction.
