Free Accounting Software + Tax Returns, BAS, Bookkeeping and Payroll from Free Accounting Pty Ltd

Free Accounting Software Multiple Bank Account Videos

The videos in this section demonstrate 2 methods to handling multiple bank accounts in Free Accounting Software. When using Free Accounting Software for multiple bank accounts you have different options. The table below summaries the options.

MethodDescriptionBest to use when
Divisions You set up a separate division for each bank account. Filter the cash worksheet by division and reconcile each division separately. Best to use when the reason for the different bank accounts is that you are using them for different business activities.
Normal Account Just create an account called "Cash at bank investment". You can reconcile all accounts not just the cash worksheet so it does not need to be a special account to be used as a bank account. Best to use when the account is an investment account. You will not need to issue cash receipts or remittance advices for the account. Also you have to post General Journals so you need to understand this.
Separate Organisation Create a completely separate "Organisation" in Free Accounting Software for the additional bank account. Before doing the BAS or Tax Return record the totals from one organisation into the other (if needed). This is the correct way to do it when the additional bank account is a trust account. So if you hold client monies use this method. It's better because it keeps it completely separate.
You may also like to use this method if you have a very autonomous branch and they are doing their own accounting. It would give you the ability to give them their own access and check their entries before consolidating them.

Why people have multiple bank accounts

These are reasons that users of Free Accounting Software have stated for having multiple bank accounts.

  • You have different branches or business activities - use the divisions.
  • You want higher interest rates - use a normal account.
  • You have a separate account for receiving cash so that you don't have to tell customers your main bank account number - you don't actually need to set up separate accounts in the system just reconcile it as one account the public account number is always zero after transferring to the main account anyway.
  • You don't really know why you have separate accounts - really just close one.
  • You hold client funds - use a separate organisation. Don't mix up the accounting.
  • It's a Not For Profit / charity and receipts to one account are tax deductible gifts - use a separate organisation. You really need to account for this completely separately.