In your Chart of Accounts, you can create an account or a bank account.
Typically you would add the following as a bank account instead of an account.
Current or deposit bank accounts
Credit cards
Loans
Leases
Hire purchase
PayPal accounts
Petty cash
Below are some other benefits of using a bank account instead of an account.
Dashboard
Each Bank Account has its own dashboard page charting the running balance and a breakdown of receipts/payments/transfers in and out during the period. There are also various quick links on this dashboard. For example, a quick link to Bank Statements.
Bank reconciliations
Reconcile against cheque/deposit entries to see what is outstanding at year end.
Match transfers between accounts
You can upload the statement data just as it is per account, then quickly match transfers between the Bank Accounts (without causing a double-up on the transaction entry in the general ledger).
📎NOTE: In some cases, you find it easier to have simple financial accounts as normal accounts so you don't have to match transfers between two Bank Account's statement data.
Statement data feeds to the General Ledger
The statement data feeds to the General Ledger, but remains a separate report in itself. This allows cheque/deposit matching and inter-bank transfer matching to work smoothly.
Split receipt or payment transactions
You can split receipt or payment transactions (you cannot do this in manual journal entries).
Favourite accounts
You can ‘favourite’ these accounts for quick access from the main menu. Just click the star ☆ next to the account.