Managing your bank accounts


WorkingPoint can help you manage your bank account transactions so you can keep on top of your cash.

With WorkingPoint, you can:

Plus you can:

Depositing money to your bank account

You can add funds to an account to record any deposits you make, for example, a rebate check. 

Note: When you receive a payment on an invoice, the payment is automatically deposited into the account you chose when you received the payment. You do not need to deposit these funds again.

To deposit funds to an account:

  1. Open the account you want to add funds to and click Record a Transaction, then choose Deposit.

  1. Enter the name of the person or company you received the funds from in the Received From field.

  2. (Optional) Choose the payment method: Check, Cash, Debit Card, or Online/EFT (electronic funds transfer).  

  3. (Optional) For checks, enter the check number.

  4. Choose the other account(s) that best represents why you received the money and enter the amount to be recorded for each account.

  5. (Optional) Add a note for the entry. You can also add a memo for the entire transaction in the field at the bottom of the form.

  6. If you need more entry lines, click Add Line.

The total amount of this transaction will be added to your bank account.

  1. Click Save.

Recording an expense

You withdraw funds from an account when you need to record money you've taken out of the account, for example, a check you used to pay for goods or an ATM withdrawal for cash.

To record an expense:

  1. From the Home page, click Record an Expense, then select whether the expense was purchased on Paid from bank account or Charged on credit card.

  1. Choose the bank account or credit card account you used.

  2. Enter the payee in the Pay To field.

  1. (Optional) For expenses paid from bank accounts, choose the payment method: Check, Cash, Debit Card, or Online/EFT (electronic funds transfer). If check, enter the check number.

  2. To add inventory to items that you keep in stock, check the "This purchase contains items to add to inventory" checkbox.

  1. Choose the item you are adding inventory to, or click to add a new item on the fly.

  2. In the Qty field, enter the quantity of this item you are purchasing.

  3. In the Cost Per Unit field, enter the cost to you for each unit.

This is the amount it cost you to purchase the item per unit.

  1. Press Tab and WorkingPoint calculates the total amount for that item.

  2. Click Add Line if you need to add additional inventory for items purchased.

  1. If you are purchasing services or other expenses, like shipping, with this purchase or payment, in the Bookkeeping Account field, choose the account to assign to the expenses you purchased.

The account you choose helps you categorize what you are spending your money on. 

For example, if you are the business owner and need some cash, you might choose Owner’s Equity: Draws to record the cash you took out of the business and enter how much you withdrew.  
 
Or, if you used your debit card to buy office supplies, choose your office supplies account and enter the total for the supplies.
  1. (Optional) Enter a description of the item you purchased.

Descriptions might be useful to remind you what you spent your money for.  

  1. Enter the amount you spent.

  2. If you need more entry lines, click Add Line.

  1. Click Save.

The total of the transaction will be deducted from your bank account or added to your credit card account balance.  

Recording a payment or purchase

You use the Record Payment or Purchase transaction to record money you've taken out of the account, for example, a check you used to pay for goods or an ATM withdrawal for cash.

To record a payment or purchase:

  1. Go to the bank account you are making the payment from and click Record Transaction, then click Payment or Purchase.

  1. If you are purchasing services or non-item other expenses with this charge:

    1. In the Bookkeeping Account field, choose the account to assign to what you purchased.

    The account you choose helps you categorize what you are spending your money on. 

    For example, if you are the business owner and need some cash, you might choose Owner’s Equity: Draws to record the cash you took out of the business and enter how much you withdrew. 
    Or, if you used your debit card to buy office supplies, choose your office supplies account and enter the total for the supplies.
  1. (Optional) Enter a description of the item you purchased.

Descriptions might be useful to remind you what you spent your money for.  

  1. Enter the amount you spent.

  2. Click Add Line if you need to assign part of the purchase amount to another account.

  1. If you purchased items you track as inventory, check the "This purchase contains items to add to inventory" checkbox.

  1. Choose the item you are adding inventory to, or click to add a new item on the fly.

  2. In the Qty field, enter the quantity of this item you are purchasing.

  3. In the Cost Per Unit field, enter the cost to you for each unit.

This is the amount it cost you to purchase the item per unit.

  1. Press Tab and WorkingPoint calculates the total for that item.

  2. Click Add Line if you need to add additional inventory for items purchased.

  1. Click Save.

The total of the transaction should equal your charge receipt and will be recorded in your credit card account.

 

Transferring funds between accounts

From time to time, you might need to move money between your bank accounts. WorkingPoint makes it easy to record the transfer of funds from one bank account to another.

To transfer funds from one account to another account:

  1. Go to one of the involved bank accounts and click Record Transaction, then click Funds Transfer

  1. WorkingPoint prepopulates the Transfer from account with the account you are recording the transfer in.

  1. Select the account you are transferring money to.

  2. Enter the amount of funds being transferred.

  3. (Optional) Add a memo, such as an online transfer confirmation number or reason for the transfer.

The total of the transaction will be deducted from your "from" bank account and added to the "to" bank account.

  1. Click Save.

 

Withdrawing cash from a bank account

As a business owner, you probably hit the ATM frequently, since that is one main way you get paid. Use a Cash Withdrawal transaction to record your bank teller or ATM cash withdrawals.

To record a cash withdrawal:

  1. Go to the bank account you are withdrawing cash from and click Record Transaction, then click Cash Withdrawal.

  1. Choose the account that best represents why you withdrew the money and the amount you withdrew. 

    For example, if you are the business owner and need some cash, you might choose Owner’s Equity: Draws to record the cash you took out of the business and enter how much you withdrew. 
    Or if you needed money for a business lunch, you might choose Travel, Meals and Entertainment and enter how much you withdrew for lunch.
  1. (Optional) Add a note for the entry. You can also add a memo for the entire transaction at the bottom of the form.

  1. If you need more entry lines, click Add Line.

The total of the transaction will be deducted from your bank account.

Click Save.

Reconciling account activity

Reconciling your bank account(s) is an important part of cash management. Making sure your accounting records match up with your financial institution helps to ensure you know how much money you really have to work with to pay your employees and vendors and yourself!

Even though reconciliations are such an important part of running your business, lots of business owners don't take the time to prove out their cash, instead they real on ATM receipts for their current balances or a quick peek on the bank's online banking site. The only thing wrong with this is that the bank can't report on things they don't know about, like the check your vendor hasn't cashed yet or the stack of checks you just received but haven't gone to the bank yet.

WorkingPoint's new reconciliation feature makes it super easy to match up to your account activity to your bank so you can see what checks or deposits are outstanding and what has cleared, so you can make sure that your money is being tracked and not a penny is slipping through the cracks. 

If you use the new banking integration feature in WP Labs, reconciliation is a cinch as imported transactions are automatically reconciled for you because the transaction originated at the bank. For transactions that are not imported from the bank, you can manually reconcile transactions with simple steps below.

Viewing the Account Activity List
Each entry has a checkmark next to the amount. This checkmark indicates if the transactions has been reconciled:

  • Green checkmarks indicate that the entry has been reconciled to a bank transaction or manually.
  • Grey checkmarks indicate that the entry has not been reconciled.
Clicking the checkmark takes you to the reconciliation window where you can reconcile, match or un-reconcile the entry.

Use the Status filter in the right hand sidebar to view All, Reconciled or Not Reconciled entries. When reconciling your account activity, use the Status filter is a quick way to view entries that have not been reconciled so you can tick through your bank or credit card statement efficiently. You can also you use the date range filter in conjunction with the status filter to view Period and Reconciled Totals at the top of the list: this helps when matching up activity totals to your statements.

To reconcile your account activity:

  1. Go to Accounts, locate the bank or credit card account you wish you reconcile and click the name of the account to view the account activity.
  2. Click the Grey checkmark to open the reconcile window.
    Here you can view any potential matches from your financial institution (if the account is connected to a financial institution and a transactions have been downloaded) that you can select. You also have the ability to mark the entry as reconciled. Marking the entry as reconciled means you have verified with your financial institution that the transaction has cleared your bank.
  3. Match or Mark your entry as reconciled.
  • Selecting a match to reconcile the entry
    All potential matches that you have downloaded from your bank will appear in the "Select a matching transaction" list. If your transaction is listed, click the Select button in the Action column to match to the entry.
OR
  • Mark the entry as reconciled 
    If you have a bank statement that you are using to match your transactions in your WorkingPoint account to your bank, this is a great option for reconciling the account. Simply enter the date the bank cleared the transaction and record a note (optional) and click Mark as Reconciled.

To undo the reconciliation of account activity:
  1. Go to Accounts, locate the bank or credit card account you wish you reconcile and click the name of the account to view the account activity.
  2. Click the Green checkmark next to the amount of the entry you wish to remove the reconciliation from.
  3. Click Remove Reconciliation.


    The entry will now display a grey checkmark. You can match it to a new transaction or leave it as unreconciled until you can prove the transaction has cleared with your financial institution.