Purpose
The Banks module manages a company's bank and credit card accounts, providing centralized visibility into account balances, transactions, and reconciliation status. It integrates with TRUE Accounting for journal entry posting and supports both depository accounts (checking/savings) and credit card accounts.
Core Function: Bank reconciliation is one of the most important accounting processes. The Banks module is where you match transactions recorded in TRUE against your actual bank statements, ensuring your financial records accurately reflect your cash position. All transactions (receipts and disbursements) flow through this module for reconciliation purposes.
List View
View and manage all bank and credit card accounts with balance tracking and reconciliation status
- Quick filter buttons to toggle between active, inactive, and all accounts
- Real-time balance updates showing reported and reconciled amounts
- Unreconciled transaction counts for each account
- Plaid integration for secure account connection and synchronization
- Quick access to reconciliation, statement creation, and transaction entry
Button Bar / Quick Filters
Account status filters
Filter buttons at the top of the Banks module allow you to quickly toggle between different account views based on their status.
| Active | Displays all active bank and credit card accounts linked to TRUE |
| Inactive | Shows all bank and credit card accounts that have been disabled |
| Show All | Displays all active and inactive bank, loan, and credit card accounts |
Icons & Actions
The Banks module provides quick-access icons and actions for common workflows including account creation, synchronization, and transaction management.
| Icon/Action | Description |
|---|---|
| + Icon | Adds a new bank or credit card account via Plaid integration or manual entry |
| ↻ Icon | Refreshes all displayed accounts and updates unreconciled transaction counts |
| Gear Icon (⚙️) Options | |
| New Statement | Creates a new vendor invoice in Bills Mode |
| New Payment | Opens a new transaction card with default type set to disbursement |
| New Expense | Opens an empty expense card in Expense Mode |
| Reconcile | Navigates to Reconcile Mode for the selected account |
| Disable | Marks an account as inactive |
Column Headers
Column headers in the Banks list view display key information about each account including balances and reconciliation status.
| Column | Description |
|---|---|
| Bank Account/Credit Card | Displays the account name and type |
| Unreconciled | Shows the count of unverified transactions, bills, and expenses for this account |
| Reported Balance | Amount reported by the financial institution |
| TRUE Balance | The reconciled amount in the account as calculated by TRUE |
Selected Record View
Detailed view of individual bank or credit card account records with account information and settings
When a bank or credit card account is selected from the list view, the Selected Record section displays detailed information about the account. The edit view differs based on account type: Depository accounts (checking/savings) display check writing information, while Credit Card accounts display credit-specific fields including credit limit and card vendor.
Bank Account Edit View (Depository)
Depository accounts (checking, savings, prepaid) contain fields for account identification, ledger integration, and check writing information.
Account Information
| Vendor | Search, select, or create a new vendor representing the financial institution |
| Bank Name | Customizable field for the bank's name |
| Type | Depository (for checking/savings) or Credit (for credit cards) |
| Subtype | Checking, Savings, or Prepaid |
| Account Name | Customizable account name displayed in Banks list |
| Description | Additional account details or notes |
| Ledger Account | Associated general ledger account for TRUE Accounting integration |
| Current Balance | Total funds in the account |
| Available Balance | Current balance minus outstanding holds or pending debits |
Check Writing
| Routing Number | Nine-digit code identifying the financial institution |
| Account Number | Bank-issued account identifier |
| Bank Address | Local banking institution address |
| Next Check Number | Sequential number for company checks |
Credit Card Account Edit View
Credit card accounts contain fields for account identification, ledger integration, and credit-specific information including credit limit and available credit.
Account Information
| Vendor | Search, select, or create a new vendor representing the card issuer |
| Bank Name | Customizable field for the creditor's name |
| Type | Depository or Credit |
| Subtype | Checking, Savings, or Prepaid |
| Account Name | Customizable account name displayed in Banks list |
| Description | Additional account details or notes |
| Ledger Account | Associated general ledger account for TRUE Accounting integration |
Credit Card Section
| Credit Card Vendor | Card network: Visa, MasterCard, American Express, or Discover |
| Account Number | Card-issued account identifier |
| Current Balance | Total amount owed on the card |
| Available Balance | Current balance minus pending transactions |
| Credit Limit | Total credit approved by the merchant |
Frequently Asked Questions
Common questions and step-by-step guidance for working with bank and credit card accounts
Bank Transfers
Inter-company bank transfers use a cash clearing account (typically account 1020) as an intermediary to move funds between accounts without creating duplicate journal entries. This method ensures the ledger remains balanced.
Steps to Record Transfer:
- Navigate to Financial → Transactions
- Click + New to create a Receipt Transaction
- Set Type to Bank Transfer
- Select the receiving account (e.g., United Bank 7583)
- Enter transfer amount (e.g., $20,000)
- Create journal entry and change ledger account to 1020 Cash Clearing
- Post the receipt transaction
- Create a Disbursement Transaction for the source account (e.g., United Bank 6705)
- Set amount to match receipt transaction
- Create journal entry (automatically uses 1020 Cash Clearing)
- Post the disbursement transaction
Note: After both transactions are posted, the cash clearing account (1020) balance should equal $0, as the debit and credit entries offset each other.
A cash clearing account (typically ledger account 1020) is an intermediary account used to facilitate transfers between bank accounts without creating unbalanced ledger entries. It temporarily holds the transfer amount until both sides of the transaction are recorded.
How It Works:
- Receipt Transaction: Debits the receiving bank account and credits the cash clearing account
- Disbursement Transaction: Credits the source bank account and debits the cash clearing account
- Result: Both bank accounts are updated correctly and the cash clearing account nets to $0
- Benefit: Prevents duplicate entries and maintains accurate ledger balances
When to Use:
- Transferring funds between company bank accounts
- Moving money between checking accounts at different institutions
- Recording wire transfers or ACH transfers between owned accounts
Tip: Always verify that the cash clearing account balance is $0 after posting both transactions. A non-zero balance indicates an incomplete transfer.
Receipt and disbursement transactions record money entering or leaving bank accounts. These transactions integrate with TRUE Accounting and can be linked to clients, vendors, jobs, or other source documents.
- Navigate to Financial → Transactions
- Click + New to create a new transaction
- Select transaction method (Bank Transfer, Check, Cash, etc.)
- In Account field, select the client or source
- Select the Bank Account receiving the funds
- Enter the Amount
- Click Done (wait before clicking Next)
- Use pencil icon to Choose Source Document and link to pay request or invoice
- Create journal entry
- Post the transaction
- Navigate to Financial → Transactions
- Click + New and select disbursement type
- Select the Bank Account disbursing funds
- Enter vendor or recipient in Account field
- Enter the Amount
- Link to source document (bill, expense, etc.) if applicable
- Create journal entry
- Post the transaction
Reconciliation
Bank reconciliation verifies that transactions recorded in TRUE match those on your bank statement. This process ensures accurate account balances and identifies any discrepancies.
Steps to Reconcile:
- Navigate to Financial → Banks
- Select the bank account to reconcile
- Click the Reconcile button
- Review Disbursements and Deposits tabs
- Use date range filter to narrow transactions to statement period
- Check the box next to each transaction that appears on your bank statement
- Use spyglass icon to search for specific transactions if needed
- Verify that the TRUE Balance matches your bank statement ending balance
- Save reconciliation when complete
Tip: Filter by "linked to this bank account" to show only transactions for the selected account, especially useful when the same vendor has multiple accounts.
Credit card reconciliation matches expense records to credit card statements. When expenses are reconciled, they are automatically added as line items to a bill for the statement, converting committed costs to invoiced costs for job costing purposes.
Steps to Reconcile Credit Card:
- Navigate to Financial → Banks
- Select the credit card account
- Create a new statement using Gear icon → New Statement
- Enter statement date and amount
- Click Reconcile to view unreconciled expenses
- Review expenses and match them to credit card statement line items
- Check boxes for expenses that appear on the statement
- Verified expenses are automatically added to the statement bill
- Complete reconciliation and pay the statement bill when due
Note: Bills are automatically created when you create a credit card statement. Job costing occurs at the bill level, so expenses remain as "committed costs" until the statement is reconciled and the bill is paid.
When a vendor has multiple accounts set up in Banks (for example, two different checking accounts at the same institution), you will see separate statements for each account. Each bank account requires its own statement and reconciliation process.
Common Scenarios:
- Multiple Checking Accounts: Each checking account (e.g., 6705 and 7583) requires separate statements even if both are with the same bank
- Different Account Types: A checking account and a credit card at the same institution will have separate statements
- Depository vs Credit: Account TYPE determines how statements are processed and what transactions appear during reconciliation
- Bank Account Filter: Use the bank account filter during reconciliation to view only transactions for a specific account
Tip: Give each account a descriptive name (e.g., "United Bank Operating - 6705" and "United Bank Payroll - 7583") to easily identify which statement corresponds to which account.
Creating a bank statement in TRUE allows you to reconcile transactions against your financial institution's statement. For credit cards, this automatically creates a bill in the Bills module.
Steps to Create Statement:
- Navigate to Financial → Banks
- Select the bank or credit card account
- Click Gear icon (⚙️)
- Select New Statement
- Enter the Statement Date (ending date on your statement)
- Enter the Statement Balance (ending balance from your statement)
- Add any additional statement details or reference numbers
- Click Save to create the statement
Note: For credit card accounts, creating a statement automatically generates a corresponding bill in the Bills module. This bill will be populated with line items as you reconcile expenses to the statement.
Account Management
Account type determines how transactions are processed, what fields are displayed, and how reconciliation works. Selecting the correct type is critical for proper integration with TRUE Accounting.
Used For:
- Checking accounts
- Savings accounts
- Prepaid accounts
- Money market accounts
Key Features:
- Check writing information (routing number, account number, next check number)
- Receipt and disbursement transaction tracking
- Bank address for check printing
- Current and available balance tracking
- Reconciliation against bank statements
Transaction Workflow:
- Use Bills module for debits (not Expenses)
- Use Transactions module for receipts and disbursements
- Direct ledger posting to general ledger account
Used For:
- Company credit cards
- Business charge cards
- Corporate card programs
Key Features:
- Credit card vendor (Visa, MasterCard, AmEx, Discover)
- Credit limit tracking
- Available credit calculation
- Statement reconciliation with automatic bill creation
- Expense tracking and job costing integration
Transaction Workflow:
- Use Expenses module for credit card purchases
- Expenses show as "committed costs" until statement is reconciled
- Reconciliation creates bill with expense line items
- Paying bill converts committed costs to "invoiced/actual" costs for job costing
Warning: Using the wrong account type can cause transactions to not appear during reconciliation. Always use Expenses for credit cards and Bills for checking account debits.
You can view all transactions associated with a specific bank account through the reconciliation mode or by filtering in the Transactions module.
- Navigate to Financial → Banks
- Select the bank account
- Click Reconcile button
- Review Disbursements and Deposits tabs
- Use date range filter to narrow transaction display
- Check "linked to this bank account" filter to show only relevant transactions
- Use spyglass icon to search for specific transactions
- Navigate to Financial → Transactions
- Use Advanced Filter to filter by bank account
- Select date range if needed
- Review receipts and disbursements
- Export or generate reports as needed
Tip: The Unreconciled column in the Banks list view shows a count of transactions that haven't been matched to statements, helping you quickly identify accounts that need attention.
Configuration & Administration
Access to the Banks module is controlled by user permissions. If you cannot see or access this module:
- Contact your system administrator
- Request the Module Access (Banks) permission (ID #1583)
- Once granted, you'll find the module in Workflows → Financial → Banks
Note: Administrators can manage permissions in Settings → Users / Access → select user → Access tab.
Transactions only appear during reconciliation when they match the account type. Using the wrong transaction type for an account is a common configuration issue.
Account Type Rules:
- Depository Accounts (Checking/Savings): Use Bills module for debits. Expenses linked to depository accounts will not appear correctly during reconciliation.
- Credit Card Accounts: Use Expenses module for purchases. Expenses reconcile to credit card statements and create bill line items.
- Transactions Module: Use for receipt and disbursement transactions (both account types).
How to Fix:
- Check the account Type field in the Banks module (Depository vs Credit)
- Verify you're using the correct module for transactions
- During reconciliation, check linked to this bank account filter
- Remove date range filter to see all unreconciled transactions
Warning: Expenses linked to a depository (checking) account instead of a credit card will not appear in reconciliation correctly. Always verify account type before entering transactions.
Depository accounts must be properly configured with routing information and check numbers before printing checks through TRUE.
Required Configuration:
- Navigate to Financial → Banks
- Select the depository account
- Click Edit to open account details
- In the Check Writing section, enter:
- Routing Number: 9-digit bank routing number
- Account Number: Full bank account number
- Bank Address: Financial institution address
- Next Check Number: Starting check number for TRUE
- Link to appropriate Ledger Account for TRUE Accounting
- Click Save to apply settings
Tip: The Next Check Number field automatically increments each time a check is printed. Set this to match your physical check stock to ensure check numbers stay synchronized.