Accounts and Bank Accounts


Ensuring your Chart of Accounts and your Bank Accounts are correctly linked up between DEAR and your accounting system are crucial to the effective functioning of DEAR Inventory. 


The chart of accounts is the list of all accounts your organisation has available to record your transactions. Having the right chart of accounts makes a big difference for your organisation. It helps you classify your transactions correctly, and generate meaningful reports to help you run your business better. 


DEAR provides a default Chart of Accounts but you can import a chart from your accounting system, or your own custom chart. Make sure to consult with your accountant or bookkeeper before adding or editing any accounts. Once your Accounts and Bank Accounts have been uploaded to DEAR, you can enter your opening balances. 


NOTE:  This article is for using DEAR in standalone mode. See our guides for QBO or Xero if you are using them as your accounting system.


Prerequisites:

  • This is one of the initial steps to set up Dear. See the Getting Started Guide for more information. 


  1. Add or edit Accounts

  2. Account Mapping

  3. Bank Accounts

  4. Manage Opening Balances (Conversions)



Add, edit, and delete Accounts

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To add an account:

  1. Navigate to Settings > Reference Books -> Financial -> Chart of Accounts. Here we have all the different types of accounts grouped under these various class headings. You can sort the screen to only show a particular class. 

  2. Click + Account to add new Accounts. 



  1. Enter all the relevant details like Account Type, Account Code, Name of the Account and also optional description. 

  2. Enable accepting payments to this account by ticking Accept payments checkbox. It will let you use this account in payment section of the purchase and sales modules. 

  3. Once you are happy with all the info click Save and this new account will be added to your chart of accounts. 





To delete an Account:

  1. Select the account you want to delete

  2. Change the status from Active to Archived

  3. Click More -> Delete unused archived accounts. 


The Chart of Accounts can be reset back to default by clicking Use Default.

You can perform bulk actions such as delete archived accounts and import chart of accounts from a spreadsheet by clicking More.




Import Chart of Accounts

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For a large number of Accounts or to import a previous Chart of Accounts quickly, information can be imported in CSV format. 


To import Chart of Accounts:

  1. Navigate to Settings > Reference Books -> Financial -> Chart of Accounts.

  2. Click More -> Import.  Here you can click on the plus sign on the left hand corner to expand and see description of all the required and optional column headings.

  3. Click on the first step Export current Chart of Accounts to CSV file to download the default template. 

  4. Make adjustments in this CSV template and also add new accounts then save and Upload back into DEAR.




Account Mapping

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Make sure your accounts in DEAR and in your accounting system are correctly linked with Account Mapping. 


To perform Account Mapping:

  1. Navigate to Settings -> Reference Books -> Financials -> Account Mapping
  2. Check all accounts are correctly linked together
  3. Save any changes





Bank Accounts

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Manage Bank Accounts

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To add a bank account:

  1. Navigate to Settings > Reference Books -> Financial -> Chart of Accounts. Here we have all the different types of accounts grouped under these various class headings. You can sort the screen to only show a particular class. 

  2. Click + Bank Account to add new bank accounts. 



  1. Enter all the relevant details like Account Name, Account Code, Account Currency, Bank name and Account number

  2. You can enter the Initial Account Balance here if you wish.

  3. Once you are happy with all the info click Save and this new bank account will be added to DEAR. NOTE:  Bank Accounts can be viewed by navigating to Financials ->  Bank Accounts. 






Import Bank Statements

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Bank Statements in CSV format can be imported to DEAR. Bank Statements in this format can be downloaded from your bank online. 


To import bank satements:

  1. Navigate to Financials -> Bank Accounts
  2. Select the bank account you wish to import a statement to
  3. When prompted, click Import a Statement

  1. Select and upload your CSV file



Bank Reconciliation

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After account transactions from your bank have imported into DEAR, you need to reconcile them. The first step is to review what's imported and work out which way to reconcile it.


Your aim is to match transactions from your bank with transactions in DEAR.


To reconcile bank transactions:

  1. Navigate to Financials -> Bank Accounts
  2. Find the bank account you want to reconcile. Click Reconcile [number] items or Reconcile Account when prompted. 


  1. Review each account transaction imported from your bank. We refer to these as bank statement lines, and they're on the left of the Reconcile screen.


 


  1. For each line, check that the statement line is matched with the correct transaction. If DEAR has matched the statement line with the correct transaction in DEAR, click OK to accept the match and reconcile. 

 

  1. Sometimes DEAR finds more than one transaction (of the same amount and of a similar date) to match with the imported statement line. When this happens, DEAR matches the most likely transaction and provides a link to other transactions that are good alternatives.

  1. If you don't want to accept the match DEAR has made, you can use the Other Possible Match Found link to select another possible match. 
  2. Select the required match and click Reconcile.



See this article for more reconciliation actions such as reconcilling a transfer between two bank accounts, or creating transactions for reconciliation. 



Bank Rules

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Bank Rules can be used to automatically reconcile bank statement lines with transactions in DEAR. 


To create a Bank Rule:

  1. Navigate to Financials > Bank Accounts. 
  2. Click I would like to > View Bank Rules. 
  3. In the View Bank Rules screen, click Create new rule and select from: 
    • Spend Money Rule 
    • Receive Money Rule


  1. Enter the conditions to build the rule. 
  2. Click Save

  3. When an existing rule is found based on set conditions DEAR will suggest a match. Click apply rule to automatically reconcile transaction.  

 

What's the difference between Any and All?

  • All - The rule is applied only when every condition is met. If one condition doesn't match, for example if a particular piece of information is missing from a statement line, then the rule will not run. This makes the rule more restrictive. 
  • Any - The rule is applied if only one of the conditions is met. The rule won't fail just because one or more conditions doesn't match. This makes the rule less restrictive. 


Allocating fixed value line items (optional) and the remainder

You can set up your bank rule to allocate one or more fixed-value portions of the transaction to an account in your Chart of Accounts.

After you've set up any fixed value allocations, you need to tell DEAR what to do with the balance of the transaction. You can allocate the remainder to one account in your Chart of Accounts or split it between two or more.


Enter:

  • The Amount of a fixed value allocation as either a positive or negative number with up to two decimal places 
  • The Percent of a remainder allocation as either a positive or negative number with up to two decimal places 




Manage Opening Balances (Conversions)

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If you have been using an accounting system previously and you are now moving onto DEAR you will have balances in your previous system that will need to be transferred over. So this is what we call conversion balances or opening balances.



To transfer over balances from a previous accounting system:

  1. Navigate to Settings > Reference Books> Financials, click Opening Balances.
  2. First, choose your Conversion date, this is the date you are going to stop using your previous system and start using DEAR. For example if we select May 2016 as the starting date, for this date we will need to enter opening balances into DEAR as of 30th of April 2016.



  1. Get the trial balance from the previous system as of 30th of April 2016 and enter the balances against all the accounts in the chart of accounts. 
  2. First, identify which accounts are your Inventory accounts and Fixed Asset accounts by checking of these tick boxes next to your asset accounts.



  1. Start entering all balances from your trial balance against the same accounts in DEAR. Some accounts have special features to keep in mind:


Bank Accounts


DEAR works from the bank statement lines, so if you had transactions in your previous system which are not yet showing on the statement what you will need to do is enter the bank statement value and include the transaction which has not gone through yet elsewhere. 

Example:  The trial balance from the previous system shows a balance for $1,100 in the EFT Bank Account, the bank statement shows the balance is $1,000. This is because there has been a transaction worth $100 which has not yet come through to the bank statement.
  • Enter bank statement value ($1000) against the bank account in DEAR
  • Enter outstanding transaction value ($100) into an Unrepresented Funds account. If you do not have a Unpresented Funds account just simply create one in the chart of accounts. So when the $100 hits the bank account it can be coded against the unpresented funds account to cancel it out.




Accounts receivable and Accounts Payable


Accounts receivable as at the 30th of April 2016 are all the sale invoices that are still outstanding on that date. Accounts payable are all the purchase invoices still outstanding on that date.


To enter Accounts receivable and Accounts payable:

  1. Enter balances against the accounts in the Opening Balances tab
  2. For Accounts Payable, go to the Outstanding Purchases tab to enter invoices. 
  3. For Accounts Receivable, go to the Outstanding Sales tab to enter invoices.


The total amount the balance is out by is displayed at the bottom of the screen. 







Stock On Hand


To enter stock on hand:

  1. Navigate to Settings > Reference Books > Opening Balances and select Stock on hand tab, this is where we can enter all our quantities on hand as at 30th of April 2016.




  1. The stock amounts must be imported into DEAR in a spreadsheet. Click Import stock on hand from CSV and download the template. Click on the + sign to see all required and optional fields. Once you have completed building your spreadsheet simply Upload it back into DEAR. 





Fixed Assets


If there is an amount in the opening balances for fixed assets (e.g. Office Equipment for $1000), a fixed asset or a list of fixed assets adding up to this value must be added to this tab. 


To add fixed assets to the opening balance:

  1. In Settings -> Reference Books -> Financials, go to the Fixed Assets tab
  2. Click + Fixed Asset


  1. In the next screen click + Fixed Asset



  1. Proceed to fill in all the details marked with a red asterisk then click Ok and proceed to save. This item is now automatically registered in your fixed asset register and you can start posting depreciation.