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AlexisBerger

How do I set up an account for cash and cheques that still need to be deposited?

Posted By

Hi everyone!

I have just began as the treasurer for a not for profit organization in my town. I do have some basic accounting courses, however I am not sure how to deal with their Sage 50 Premium Accounting program, as someone has already set up a lot of stuff prior to me starting.

They have a main bank account, and anytime some pays for something (with cash or cheque) they input it into the system as being deposited into that bank account. Due to this when I attempt to reconcile that bank account there are a lot of transactions in SAGE that are not on the bank statement, as they don't take all of the cash and cheques they receive to the bank on a day to day basis.

How would be the best way to set up accounts so this isn't happening? I am thinking I need to set up an account for "Cash and Cheques to be Deposited", and then when they take a deposit to the bank, somehow record that those were moved into the bank account?

Thanks!

  • 0
    Are they combining the cash and cheques into one deposit? Are they writing the individual cheques onto the deposit slip?
  • 0 in reply to Marj@Swab
    Currently, they are just taking the cheques and cash into the bank and doing a deposit at random times, and not bringing back any kind of a slip saying they have done so. I think if I can get them to start doing a daily deposit slip with the cheques and cash they receive and bringing a deposit slips back from the bank when they take everything that would help a lot.
  • 0 in reply to AlexisBerger
    I do a deposit usually twice a month, but I make sure on the deposit slip that the cheques are written out on the slip so when reconciling the bank later you can see what makes up the total on the bank statement. You can print off a deposit slip that you can fill in that goes to the bank and get them to stamp it. The bank must be giving them at least a piece of paper (receipt) showing how much was deposited. Are they throwing those out? Or you can get the bank to supply the deposit books that have two pages so one page stays in the book.
  • 0 in reply to Marj@Swab
    I was thinking getting a book for them to record what they get daily on, and then whenever they go to the bank we at least have something to see what days worth of cheques/cash made up the deposit they put in the bank. Yes, they are just throwing away whatever the bank gives them.
    My biggest issue is that when I go to reconcile their accounts, sage has all these transactions of things going INTO that main bank account- $12 cash here, $40 cash there, a $200 cheque that day- but when you compare it to the bank statement, none of those are on their, because they didn't necessarily go to the bank that day to deposit anything.
  • 0 in reply to AlexisBerger
    HI
    In many versions of Sage, you can print your own deposit slips. But first of all, you could create an account "To deposit" and anything that is actually deposited directly into the main bank account should be deposited in this new account. Then you could deposit what is in this new account and you will know a lot about the content of the deposit.

    You should train them to leave traces traces of what is deposited, your job will be easier and their date more accurate., a win-win point!

    Regards,
    Danielle
  • 0 in reply to DanC
    Hi Danielle!
    I found that they have an account called "Cash & Cheques on Hand", however, when you take a payment and select the account to deposit that payment into, the only options are their three banks accounts- I cant find any way to be allowed to choose the account I need. Is there some way I have to add it to that list?
    Thanks so much for the help!
  • 0 in reply to AlexisBerger
    The Chart of Accounts type should be 'Cash'.

    Under Setup | Settings | Accounts Receivable | Linked Accounts, choose the cash account.

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