I've read everything I can online about the bank fee's, but, I'm still unsure how to enter them to match with my bank feed download. Do I create a vendor called Bank Fee? And then select Bank Service Fee's as the account?
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To match the bank feed I would write a cheque, the payer would be the bank (RBc, TD, Scotia, etc). Then you can use the Bank Service Charges account.
As mentioned above you can exclude from the bank feed & assign the bank feed from the reconciliation screen as well.
Either way is correct, it’s a matter of preference.
Bank feeds don’t include anything unless you tell it to. Think of them as a live bank statement. They let you know what has cleared your bank. They should match existing transactions whether they’re deposits or cheques or receipts pushed over from an app like ReceiptBank. You can add them directly from the bank feed though. Click on the transaction & choose who the payee is, what account it needs to be allocated to & what tax you paid. Exempt tax should be used if you didn’t pay tax & it affects your income or expenses, zero rated is if you paid in a foreign currency. Out of Scope should be used for items that affect the Balance Sheet (assets, liability or equity) like a draw. For Out if Scope I would create an expense first and select Out of Scope from the Amounts are drop down menu. If you use it on a transaction line it affects your GST/HST reporting.
I hope this helps!
I'm sorry, I didn't mean bank 'feeds'. I meant to ask if bank 'fees' are exempt from GST/HST -- does HST/GST apply to them or not? I suppose that's question for Canada Revenue Agency, sorry.
I don't seem to have the option to enter interest and charges in the reconciliation window. Does this need to be turned on in settings?
If you’re using bank feeds you would allocate the interest or bank charge to the transaction that it pulled the money out from. Example, $10 coming out Mar 31 was for monthly bank fee. If you do not use bank feeds, then when you go to your reconciliation section there are boxes to enter bank charge and interest income amounts.
I hope this helps.