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Accounting for bank interest

#1

I need to be able to introduce bank interest to the system, which appears on downloaded bank statements, in order to properly reconcile ins and outs. Where should it be introduced?
Thanks

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#2

Hi @Arnies

Is this bank interest received or paid?

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#3

Ah, sorry, yes, interest received to me.

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#4

No problem! In this case I would create a new nominal, along the lines of “Bank Interest Received” in the 4000-4999 range (Sales/Income). When it comes to tagging the interest transaction, tag it as “Something else not on the list” straight to the nominal code.

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#5

Can it not go down as a credit under 7900 Bank Interest Paid?

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#6

7900 is an expense code. Generally an income code would be best, but if in doubt, I would double check with your accountant (I’m not one).

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#7

I would post it to nominal 4010 (interest received), which in turn gets added to turnover.

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#8

I just post mine to “miscellaneous income”, this also gets shown on the top line with turnover.

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