How do I record a part payment?
There may be occasions where you make or receive part of a payment such as an invoice, payslip etc. inniAccounts allows you to record and track part payments for easy reconciliation at a later date.
Where you have a pending payment in your Bookkeeping area you can match part of the payment. Any balance due will remain as a pending payment allowing you to keep track of it until it is paid. A common scenario is when you are not paid the full balance of an invoice.
Recording a part payment
In the example below an invoice has been submitted for £1,200 including VAT but only £1,000 has been paid, i.e. the 20% VAT has not been paid. This scenario may occur where you are waiting for VAT registration and your client withholds the payment of VAT. A pending payment for the invoice is listed in the Bookkeeping area.
- To match a part payment click the match button.
2. When matching the pending payment against your bank statement, input the details exactly per your bank statement, i.e. make sure the date and amount match.
3. When you save the transaction it will show the amount you have paid / received as per your bank statement and a pending payment will remain for the balance of the transaction.
4. When you receive the payment for the remaining transaction balance you can then mark the pending payment as paid.
Can I change order of accounts in drop down menus?
Yes: you may want to see a different default account shown in your Time & expenses or Bookkeeping pull down menus.
At the moment we don’t have a facility for users to change the order of accounts listed however if you contact your account manager they’ll be happy to help you.
What should I consider when choosing a business bank account?
Bank feeds – inniAccounts is FCA approved and can therefore connect to the majority of banks via a direct, secure connection. With bank feeds your business bank transactions are automatically imported daily into inniAccounts. This saves you time and helps ensure accurate and complete records. Check which banks are currently supported here.
Bank Charges – business accounts normally have monthly fees and a charge per transaction. If you are likely to process a large number of transactions in a month then you need to pay particular attention to the charge per transaction. Most major banks provide an initial free banking period which is a nice bonus, but never be afraid to negotiate your ongoing charges.
Interest Rates – interest rates vary significantly between banks. Some banks may pay low interest rates, but they may also have low charges. Many contractors and freelancers look for banks that offer multiple accounts so money that is being set aside for tax payments can be put in an account that offers higher interest.
Online banking – most major banks now offer online banking facilities which are generally very convenient, and particularly helpful if you have your business bank account at the same bank as your personal account, as you’ll probably be able to make instantaneous transfers.
What are BACS and CHAPS payments?
BACS stands for Bankers Automated Clearing System which is used for sending money electronically from one UK bank to another. It is used for paying salaries, direct debits and other regular payments and it typically takes 3 working days for the transfer to complete.
CHAPS stands for Clearing House Automated Payment System and is a faster way to transfer money than BACS. The transfer is normally completed on the same day. There is however usually a charge for this service which varies depending on which bank you use.
Faster Payments is a new payment system that has been developed by the UK banking industry. The Faster Payments Service enables electronic payments, typically made via the internet or phone, to be processed within a matter of hours. This new service will run alongside the existing BACS scheme.
For most payment systems you will need the Sort Code and Account number of the account that you wish to pay into. Most payments from UK banks are now done by Faster Payments.
How do I set up a new business bank account?
The process for setting up a business company bank account may vary slightly between banks but the general requirements are:
- Complete a ‘Company Bank Account’ application form
- Present your company’s ‘Certificate of Incorporation’ and ‘Memorandum of Articles and Association’.
- Present Proof of Identity at the bank.
- Present ‘Director’ and ‘Company Secretary’ details to the bank.
- Apply for the online banking facility
You normally have to attend in person to set up an account as there will be forms to sign and the bank will have to confirm your identity.
Do I need a separate business bank account?
Yes. If you’re using a limited company you will need a separate, specific company bank account. You cannot run your business from your personal account.