Choosing the payment account: cash, bank and other accounts
Select the right account when recording a payment to ensure your cash and bank balances are accurate.
Every payment must go to an account. In Usystems, the account you choose determines where the money is recorded in your general ledger and affects your cash and bank reports.
Before you start
- Your administrator must have set up payment accounts (usually cash, bank, or a petty-cash fund) in your chart of accounts.
- Know where the money physically went (into which bank account, cash drawer, or fund).
- If you are unsure which account applies to your situation, ask your administrator or accountant.
How payment accounts work
Cash accounts are for money received by hand or through a till (point-of-sale). Examples: "Cash - Head Office," "Register #1," "Petty Cash."
Bank accounts are for money deposited into a bank. Examples: "Bank Account - Primary," "Bank Account - Secondary," "Savings Account."
Other accounts (less common) are for payments into unusual places: a credit card merchant account, a loan to be paid back, or a clearing account. Ask your administrator if you need these.
When you record a payment to a specific account, Usystems updates that account's balance. Your accountant can then use this data to:
- Reconcile your bank statements against the ledger.
- Track how much cash you are holding.
- Spot discrepancies before they become problems.
Choosing the account in a payment
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Go to Payments → New Payment Open in Usystems
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Fill in the Customer and Amount fields.
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In the Account field, you will see a list of accounts set up for receiving payments. Choose the one that matches where the money went:
- If it is cash from a customer, choose a Cash account.
- If it is a bank transfer, choose the Bank account it went into.
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Continue with the rest of the payment form and save.
Common scenarios
| Scenario | Account to choose |
|---|---|
| Customer pays cash at your office | Cash account (e.g., "Cash - Main Office") |
| Customer transfers money to your bank | Bank account (e.g., "Bank - Primary") |
| Customer pays via a payment app (Square, etc.) | The bank or merchant account associated with the app |
| Customer sends a check that you will deposit later | Create a "Checks Received" or "Undeposited Funds" account with your accountant, then record payment there |
Tips & common mistakes
- Do not invent accounts. Only choose accounts that are already set up in your chart of accounts. If the account you need is missing, ask your administrator to add it.
- Match the money flow. Choose the account that reflects the actual destination of the money. If you get cash, pick cash. If it goes to the bank, pick the bank account.
- One account per payment: Each payment record goes to only one account. If money is split between accounts (part cash, part bank), create two separate payment records.
- Bank reconciliation: Your bank account balance in Usystems should match your actual bank statement. If it does not, check that all payments were recorded in the correct account.
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