How should I record interest received?

Accounting
1

I am I correct to think there is no default way to record interest received from a bank? I need to create a nominal code? But then its just listed under sales and if I need to report interest separately to HMRC…

Should I be surprised there isn’t already a built-in code for interest received? If there isn’t!

Thanks

2

Hello @glasgow

The following thread may help - How to record or allocate interest?

1 Like
3

Thanks @QFSteve I hadn’t seen that post.

So “7900 Bank Interest paid” is the correct nominal account? I did see that earlier but was confused that that was for interest I paid the bank, not the bank paid to me. I was looking for Bank Interest received…

Thanks again

4

Hello @glasgow

7900 is in the overhead range so the money in from interest would be offsetting the money out for interest you may be paying out.

You could set up your own code in the same range if you want to keep them separate.
https://support.quickfile.co.uk/t/adding-a-new-nominal-account/8882

5

May be better to use an income code, such as 4900 - Miscellaneous Income

1 Like
6

No, you should not use 7900 for interest you receive. If there isn’t a code available, then you will need to add a new one. You cannot offset income against costs, you need to record them separately.

7

I would just set up a new one but in the income range.