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33 sats \ 8 replies \ @PictureRoom OP 19 Feb \ parent \ on: Accounting Software Rec? tech
Since I’m starting fresh in a program, I need to set an initial balance. I’m looking at my past bank statements and considering using the one ending on December 25, 2024, as my starting point.
Is it best to import all transactions first, or is there something else I should consider? Also, when should I do the reconciliation - after importing everything?
Additionally, how should I categorize transactions when money comes into the account from an external source and is then transferred to another external account?
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Yes use your end of year bank balance as your starting number for 2025
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Import all 2025 transactions? Yes probably best and then you can recon to end of Jan 2025 bank statement. Typically bank recons are done against the bank statements so normally can only do once month is ended. You won't need any pre-2025 transaction....
money comes into the account from an external source and is then transferred to another external account?
Is it an income for the business? and the outgoing is what? Expenses? Your personal payment?
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Thank you very much.
Do you recon after each month? Do you need to import your statement into manager at the end of every month, or do you just manually input the transactions as they come? Is there a way to automate that process?
The money that comes into manager from an external source would be, for example; sending money from a retirement account into manager, and then those funds sent to an exchange to purchase btc
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The simplest way to handle recons is
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Simply don't enter Receipts or Payments until you receive your bank statement (or until they show up in your online transaction list in your bank account). You can still enter Invoices or Purchase Invoices for pending incoming or pending outgoing movements....just don't do the Receipt or Payment until you have confirmed its moved in/out of your bank account.
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On the main Summary page (front page) of manager, there is a "Edit" button. This allows you to set the effective date. So you can set the date for instance to Jan 31, 2025 and then see what your bank balance should be up until that point and compare against your Jan bank statement to make sure you didn't miss anything
Manager does have a "Bank Reconciliation" module (New modules are activated from the "Customize" button at bottom of main Summary page). But I've never used the bank recon module....I only have 20 or so transactions per month so its just as easy to do recon things manually by setting the "Edit" button to the month I'm recon-ing.
The money that comes into manager from an external source would be, for example; sending money from a retirement account into manager, and then those funds sent to an exchange to purchase btc
You should probably just setup those as additional bank accounts. Then you can use "Interaccount Transfer" module to move from one to another. It doesn't make sense to handle those as Receipts or Payments since its just another one of your accounts....the equivalent of moving money from your left pocket to your right....
Manager does have an Investment module, but I've never used it, but it may be helpful for you in that case.
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This was really helpful - thank you! I had to read through it a few times to fully grasp everything.
Just to clarify, would you recommend importing my bank statements at the end of each month and then reconciling them? I want to make sure I’m not overcomplicating things while keeping everything accurate.
I also have credit cards that my main bank pays off, so the statement balance is reflected in my bank account rather than the itemized transactions from the credit card itself. In that case, should I import my credit card statements at the end of the month as well?
I came across a YouTube video discussing control accounts—I’ll link it here:
https://www.youtube.com/watch?v=YXemZmcN9dM&t=116s
Thanks again for your help.
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would you recommend importing my bank statements at the end of each month and then reconciling them?
Really just depends on how many transactions you are dealing with. I normally never import my statements since they are only 20 or so per month....I keep up with my Payments and Receipts weekly via manually entering by checking my online banking register. So its only like 3 or 4 manual entries per week.....point is by time bank statement arrives I usually just need to check what was final bank balance matches state balance.
If you use Bank Recon module I think it makes all this easier since you will now get a "Cleared" field in Payments and Receipts (one thing Manager does it hide or show fields depending on what modules are activated, so if you activate Bank Recon you now get a "Cleared" field in Payments and Receipts)
I came across a YouTube video discussing control account
Control Accounts are very cool....I've never used them but was good to see a video on them. So yeah, you can setup your CC via a control account and then use Inter-Account transfer to "pay off the CC" from bank account.
As to import CC statements, if its lots of transactions then yes would make sense.
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Thank you so much. I will attempt to start this tonight and reach out again if I encounter any other issues / questions!
Does the program automatically overwrite previous bank statements that I import or does or does it recognize it?