Transfers are similar to ordinary transactions, but relate wholly to movements of money within the Council, rather than receipts or payments by the Council. These are easy to forget, but are essential to providing a comprehensive account of the Council's monetary position.
Bank Transfers include:
- Money which has been received as cash (and already entered as a cash receipt transaction) being paid into the bank
- Drawing a cheque made payable to cash for petty cash expenses etc (which should NOT be entered as a cheque payment, but only as cash payments when the cash is spent later)
- Transfers between different bank accounts, such as from deposit account to current account
Transfers are easy to miss - remember to check the bank statement for them and add a transfer record if necessary, and also remember to check them off as cashed when doing bank reconciliations.
If you have bank accounts which automatically move money between current and deposit accounts to gain best interest rates, perhaps even on a daily basis, you will not be able to maintain records of these movements. Instead you should combine both actual accounts as a single bank account in this system and work on the total figures.
For help on how to enter a bank transfer click here: Entering a Bank Transfer