Hello, can someone tell me what a suspense account is please, how it works and do I need it?
In double entry bookkeeping (which QuickFile is based on) there are always at least 2 postings per transaction, a money in and a money out (Debit and Credit).
The suspense account is used when the software does not know where to post an entry to/from.
01/12/2022 £100 money in on the bank (untagged)
The software does not know where the money came from so it posts it as coming from the suspense account.
When you tag the transaction (let say as a transfer from another bank) the £100 is removed from suspense (and a money out is posted on the other bank the other bank in this example).
If you have a value on suspense then there will either be untagged transactions or an opening balance entered.
Hope that makes sense
Many thanks for this
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