Bank accounts

[eaglecoug]

I started at a company and they have a system with many problems. They have two bank accounts. One account is for rental deposits (A) and the other account is for checks to be cut for expenses (B). Basically one account is for outgoing and the other is for incoming.

However, in their accounting system they book both deposits and checks as though their is only one bank account, the bank account where the rents are being deposited (A). They also run an owner's statement to show an outline of the income coming in and what bills were paid. And they book both incoming and outgoing to account (A) because they want the owner's statement to show both flow of money, not the just show the rents being deposited. My problem is that I cannot do a bank recon.

I am brainstorming and conclude that we can create a duplicate of bank account (A) in the system, we will call it account (C). And from now on, going forward all checks will be written from that account and every deposit will be sent to that account.

Then we can do a balance forward with today's bank balance and when we do a bank recon going forward it will balance zero. This is the only solution I can come up with.

 

[kirby]

Of course, they need to have separate gl accts for the two separate bank accts. so you need to convince them of that. Until then since there is only one gl acct i would reconcile that by combining the two bank statements. So i am reconciling the single gl acct to the SUM of the two bank accts.