One of the easiest ways to get a bunch functionality out of your accounting system is by linking your bank account. In Billy, we have connections to several financial institutions that allow us to pull your bank data directly into your accounting system.
To link a new bank account, you'll first need to create an account for it in your 'Chart of Accounts'.
To get to the chart of accounts, you'll go through the 'Accounting' menu and click on 'Chart of accounts'.
Next, you'll want to click on the 'Create account' button on the top right, and select 'Create bank account'.
You'll now see the 'Create account' screen where you can start setting up your bank account. Before you link your bank account, you'll need to fill out the information on the right under 'Basic information'. If you're setting up a checking or savings account, you'll want to select 'Bank and liquid assets' as the 'Account type'. If you want to add your business credit card, you'd select 'Credit cards'.
If you plan on receiving payments from customers in this account, you'll want to check the 'Enable payments to this account' box. This will allow you to add your bank account information to invoices sent to customers.
Note: The information on the right under 'Bank information' is entirely optional. You would only add this information if you want to display it on invoices you send to your customers when you request a bank transfer.
Once you've added all of the information for your account, you'll click the 'Link my bank account' button.
You'll be asked to save your account information, and be taken to a new screen where you can select which bank your account is at. You can select from one of the pre-defined options or search for your bank using the search box.
Once you've selected your bank, you'll enter your online banking login information.
Once you've entered your online banking credentials, it will take a moment to authenticate you. You may have to answer some security questions provided by your bank for further authentication.
Once you've been authenticated, you'll be brought back to Billy. If you have multiple accounts with your bank, you'll be asked which account you'd like to connect. If you want to connect more than one account, you'll need to set up a new bank account in Billy using the same process as before.
You'll also need to specify the date after which Billy should start pulling transactions. It's a good idea to only pull the transactions you need, so that your accounting system doesn't become cluttered.
Once you've set your start date, you're all set! Billy will start looking for transactions and pull them when they arise in your online bank account. Please note that the first time Billy sets up the link with your bank, it may take 20-30 minutes before transactions are imported.
To view the transactions that Billy has imported, you'll go to 'Bank accounts' and select the account you want to view. All of the transactions will be available to view on the 'Reconcile' screen, which you can get to by clicking 'Reconcile' in the top right.
Setting your opening account balance
Once you've linked your bank account, you'll want to make sure to set your opening balance so your current balance shows up correctly. To set your opening balance, you'll want to navigate to 'Settings' -> 'Tax settings' -> 'Edit opening balances'.
When setting up your bank account, you'll want to enter the balance of your bank account at the time of your conversion date.
Picking a conversion date
For most people, the conversion date is the first date that you want Billy to start recording data for. If today is February 13th, and I want to import all of my transactions since the beginning of the year, I'll choose January 1st as my conversion date.
Setting the bank balance
In this example, we'll set the opening balance for a bank account with $4,000 on January 1st. It doesn't matter what my bank account balance is now, but rather what the balance was on January 1st.
Once we enter the opening balance, we'll need to make a corresponding entry to represent this value in our business.
Making a corresponding entry
Usually, the best way to do this is to add the bank account balance to the number in the 'Common stock' account. In this case, the balance of my common stock is $0, so I'll just add $4,000.
Once you've entered your bank account balance and made a corresponding entry, you're all set. Make sure to click 'Save' in the top right corner to save your changes.
Setting up an accounting system is complicated! Don't be afraid to to reach out to one of our support agents for help. We're happy to assist.