Create a cheque clearing account

If you receive payments by cheque, create a clearing account to allow for the time delay between receiving the cheque and the time the money comes into, or goes out of, the bank account. All cheque payments or receipts can be recorded against this account until they have cleared, after which they can be transferred to the appropriate bank account. This ensures that all transactions balance, even if the cheque has not yet cleared.

1. Go to Banking > Banks and select Add New Account.

2. From Manually create and manage select Continue.

3. Enter a Name for the account.

4. The Account Code is the code that will be used on your chart of accounts. This is generated this for you, but you can enter a different code.

5. You can select an Icon from the list to visually represent your bank. This is displayed on the Financial overview widget.

6. The Start Balance should be zero.

   If you have any cheques waiting to clear, you can record an opening balance using a journal.

7. The remaining fields can be left at their defaults. Select Save.