Set up bank accounts and opening balances
This is step 5 of 7 to set up your clients with Sage Accounting.
On this page learn how to:
- Set up a bank account
- Add another bank account
- Enter bank opening balances
Set up a bank account
Two bank accounts have already been created, one for a bank account and one for cash. You need to add the details of your client's actual bank account then additional bank accounts where necessary.
- Go to Banking, and select the Bank Account tile.
- Enter details for your main bank account.
Show bank details guide
|Account Name *||
Enter the name for the account. This shows on the Banking page and on your reports.
Use a name that makes it easy for everyone in your business to identify.
|Account Type *||As this will be your main bank account, it is automatically set to Current.|
|Sort Code and Account Number||Enter the details for this bank account.|
|Default transaction method||When you enter a payment or receipt, this will be the default method shown.|
Payments and receipts for this bank account are recorded in the Ledger Account shown here.
This is 1200 by default. You can change to a different ledger account if required. You might need to do this if you imported your chart of accounts.
|IBAN||This is the International Bank Account Number.|
|BIC / Swift||A BIC (or SWIFT code) is used for processing an international payment using the SWIFT system. BIC stands for Bank Identifier Code.|
Add another bank account
- Go to Banking, select New then Bank Account.
Enter the details.
The account name shows on the Banking page and on reports.
Account Type This adds a logo to the top right corner of the tile to allow you to identify it more easily.
- Select Editon the bank account to add details such as the account number and sort code.
- Select the tile for your new bank account.
- Enter the details as required.
- Select Save.
Enter bank opening balances
Before you begin you must set a VAT Scheme and Accounts Start Date by selecting Settings then Accounting Dates & VAT.
There two ways you can enter your opening balance, when you create a new bank account or from the Opening Balances section in Settings.
Add an opening balance with a new bank account
- From Banking, select New then Bank Account.
Choose the right account type and enter your bank details.
You may record your Sort Code and Account Number and / or the Last 4 digits of your credit card number to help you identify the account.
- Select Add an opening balance.
- Enter a corresponding Open Balance Date.
- Select if the bank account has a positive opening balance, is overdrawn, or you can indicate an overpayment balance for credit cards and loans.
- Enter the amount.
- Choose to Save the details or Save & Connect Bank.
Find out more about bank feeds (opens in a new window or tab)
Enter opening balance from Settings
- Select Settings (or More in Accounting Start).
- In the Opening Balances section, select Bank.
- Check the Accounts Start Date is correct.
If it isn’t, select the date. Then change it as required and select Save.
- Enter the bank details.
Show bank details guide
|Bank Account||Choose the relevant bank account.|
|Date||This date must be before the Accounts Start Date entered in Settings, Accounting Dates & VAT.|
|Type||Choose whether the balance is a Receipt (debit) or Payment (credit) (overdrawn) amount.|
|Opening Balance||Enter your total bank account balance from your bank statement as at the date used for your opening balance.|
- Repeat the previous step on the next available lines until you’ve entered the opening balances for each of your bank accounts.
If you’ve entered bank items in your previous accounting system but they have yet to clear on your bank account, you should record each of them on a separate line, using the date of the original transaction. You can then reconcile these items easily once they appear on your statement.
- Select Save.