To ensure funds are allocated to the same category on the reconciliation page, corresponding credits and debits must be assigned to the correct subcategories. Such as, ‘Float in’ corresponds with ‘Float out’. This will ensure that balances have a contra entry.
It is also recommended that descriptions be added to bank lines where appropriate. This will make identifying contra lines easier and provide you with more context for these in the future.
Below are two tables that show which bank lines contra each other in the same ledger.
Property-related bank lines
If a bank line is assigned as Category – The property, please follow the below contras.
Reconciliation Categories | Credits (money in) | Debits (money out) |
Deposit balances | Deposit in | Deposit out |
Float Balances | Float in | Float out |
Landlord balances | Rent in Landlord's other income | Rent out Management fee |
Contractor balances | Landlord repayment of expense | Landlord expense |
Total repayment of expenses | Tenant repayment of expense | Tenant expense
|
Overpaid rent | Overpaid rent | Rent repayment |
Holding funds | Holding funds in | Holding funds out |
Withholding tax
| Withholding tax – from landlord | Withholding tax to HMRC Withholding tax - refund to landlord |
Revenue | Landlord direct payment of fee Landlord indirect payment of fee Tenant direct payment of fee Tenant indirect payment of fee Commission in | Landlord fee refund
Tenant fee refund
|
Business float
| Business float in (loan) Business float in (rent) | Business float out
|
Business-related bank lines
If a bank line is assigned as Category – Business, please follow the below set of contras.
Reconciliation Categories | Credits (money in) | Debits (money out) |
Revenue | Direct fee payment general | Fee transfer between internal accounts |
Bank interest | Bank interest in | Bank interest out |
Business expense
| Repayment of expense (non-customer)
| Cost of sales Property expense: business to pay |
Business float
| Business float in (loan) Business float in (rent) | Business float out
|
Suspense account | Suspense account in | Suspense account out |
Internal transfer | Internal transfer in | Internal transfer out |
Other money | Other money in | Other money out |