Online Cashbook Accounting App BanktoBook

BanktoBook is the easiest money manager for online cashbook accounting

Many personal finance managers and budgeting tools fall short when it comes to tax preparation.

BanktoBook is focused on minimal data entry, automatic categorisation, the overall picture, tax preparation and tax reporting.

BanktoBook is the easiest way to manage your money. It uses your bank or financial institution accounts, consolidates them, automatically categorises them by rules and can produce various reports including a category listing that is ready to give to your tax agent.

It is online cashbook accounting.

There is nothing extra to install on your computer. It can be accessed from anywhere at anytime.

It saves time and money. It saves time because there is no data entry of transactions. It saves money because it enables an accurate record and optimises tax deductions.

It works with any bank account. It is not locked in to any particular bank. It works with most countries and accounting (financial, fiscal or taxation) periods. It is currently in English and the transaction descriptions can be in any language in the standard character set.. It can be expanded with country specific servers and more automatic rules. It understands business and personal transactions mixed into accounts.

This is what distinguishes BanktoBook from other solutions. It projects your online accounting to a solution for tax preparation and tax reporting.

Transactions are automatically categorised when they're uploaded so you'll see where your money is being spent straight away or where your income comes from.

There is a range of reports to show things like income vs expenses, income and expenses by category and your budget vs actual spending.

There are automatic categories. We'll automatically categorise your transactions into meaningful groups like rent, groceries, ATM/Cash withdrawals, retail expenses etc. That way you'll be able to see what you're spending your money on.

We support all types of bank accounts. BanktoBook Money Manager can include any bank or financial intitution account.

BanktoBook is NOT in competition with mainstream accounting systems

BanktoBook is accounting for dummies

BanktoBook is not a mainstream accounting system. What is a mainstream accounting system? Please read on.

Comparing BanktoBook to other accounting systems is chalk and cheese. We are not alike and we are not in competition.

BanktoBook is aimed at a new market segment.
This comes under and around the radar of mainstream accounting.
It comes under because it is for people who don't have and won't have the main offerings.
It comes around because it can be a gateway to existing systems.

Go ahead and compare accounting systems or read accounting software reviews or do an accounting comparison or try to use a mainstream accounting system.
Remember that BanktoBook this is a new concept in online accounting. Please come back and retry it.

If you do a lot of sales invoicing, want payroll for employees or want to keep track of stock then look at mainstream accounting.

If you read that you should not mix personal and businness transactions, then be assured that BantoBook considers a mix to be normal.

If you read that the Tax Department (IRS, ATO) is suspicious about a mix of business and personal transactions, then be assured that a mix can be quite normal for certain businesses such as a home business. The task is to separate and justify the mix and BanktoBook makes this as easy as possible. For example, say you have a home business and your electricity bill is regarded as 90% personal and 10% business. This can be quite normal and BanktoBook does it automatically. It is just a case of remaining below the threshold of what the tax depertment accepts while remaining wholly justified for the business portion of claimed expense.

BanktoBook is a one stage process and bank imported transactions are the ONLY source of data. Bank reconciliation is different and even easier and we now call it bank balance reconciliation. This process would not even be necessary except to protect against missing transactions due to download, import or date selection problems.

If another product says it imports transactions from bank accounts and does bank reconciliation, then look for a two stage process. Stage one is an import to a bank reconciliation import area and stage two is a matching process. This is because the bank imported transactions are not the primary source of data. Unmatched entries are dealt with manually and the degree of matching varies greatly as does the complexity. Bank reconciliation is claimed to be easy but this is compared to the methods that existed beforehand. If it is called "bank to book" or "book to bank" reconciliation, it is not to be confused with the banktobook product itself.

If another product says that you cannot undo an import, then consider BanktoBook because imports can be undone.

If another product asks you to understand owners equity, assets, liablilty or depreciation, then it is mainstream double entry accounting and requires you to understand accounting.

With BanktoBook, you are just dealing with oncome and expense. Your accountant or tax agent deals with the complex accounting notions.

With BanktoBook, there is no need to deal with unpresented or outstanding cheques (checks) in order to do a reconciliation because cheques only appear in your books when they are in the bank account - end of problem. These are always a problem with mainstream accounting.

Compare such things as the flexibility, ease of use and degree of success.

If another product says it is a one stage process OR that bank account imported transactions are the ONLY source of data AND it automatically categorises transactions by rules AND it is an accounting system rather than a personal finance manager then it is probably someone trying to copy the BanktoBook concept.

If another product says it is important to understand 'debits' and credits', or double entry accounting, then it is a sign that it has a complexity that BanktoBook does not have.

It is 'start now' for FREE accounting software so that you can try it and move up to a better plan. It is the best accounting software for personal accounting or home accounting or business accounting when a complete accounting system is NOT required.

It is the top choice for online accounting software, cloud accounting software, simple accounting software, cash book accounting software. It is simple, easy accounting for dummies.

BanktoBook is classified as accounting and finance software and as an accounting information system.

BanktoBook is not limited by accounting time periods

With BanktoBook you can start by downloading every transaction that the bank will give you. Some banks limit this to 3 months but this is not a BanktoBook limitation. Some banks will allow full history from inception of an account.

BanktoBook also allows you to create simple manual files of transactions that can be imported import. This is a way to establish a long history even when the banks limit the downloads. Some banks or financial institutions may not offer transaction downloads, so again you can do it manually. It is simple beacuse only date, amount, and description are required.

BanktoBook allows for uploading transaction in past time periods. So you can start with current and then build up past periods as time allows.

BanktoBook is NOT in competition with personal finance managers

What are personal finance managers? The banking industry is moving towards supplying data for personal finance managers. These may also be called terms like Money Managers or MoneyCenter. The banks provide the ability for these to automatically connect to the banks (and financial institutions) and automatically download transactions and balances. The banks also have standard categorisation which is broadly pretty good. The personal finance managers have the ability to work across many banks and consolidate most of your accounts in one place. They usually allow for setting budgets, tracking bills due to be paid and making online payments.

If another product says it automatically categorises transactions by rules then that is a good start. There are lots of products that do this but how good is the categorisation. Can you add your own categories? BanktoBook's categories are connected to a chart of accounts. That is one reason why it is an accounting system more than a personal finance manager. A comparison means looking at the outcomes. Does it produce a report to give to your tax agent? Can your tax agent logon and look at your data and assist with finalising the categories, tax and business percentages? Does adding a new rule allow for cut-and-paste from a selected transaction? Does it allow for business and personal on an automated percentage basis? Does it do GST or VAT calculations on an automated percentage basis? The answer to these is often NO. BanktoBook says YES.

Personal finance managers require you to give away your online banking logon details. BanktoBook does not.

Read the Terms and Conditions and you will find you are liable for just about everything. Ask a bank person if you can give away your online banking details and they will most likely say NO. If you do, you may be liable for loss. That is not entirely unreasonable as the banks have no control of the usage but the important point is that ultimately you may be liable. Notwithstanding that, the banks cooperate with supplying data to personal finance managers who require your banking details. and security is usually demanded to be very high.

BanktoBook is SECURE

With BanktoBook there is no need to give away your online banking password.

Why? Because BanktoBook relies on you connecting to your bank and doing transaction downloads and then uploading/importing them to BanktoBook. We also give you control over the imports which can be undone and redone.

Why is BanktoBook different because I am told "Keep your business and personal finances separate. Mixing business and personal funds is a certain road to disaster"

With BanktoBook a mix of business and personal is normal. How can this be?

Let's take a scenario. Say you are a home based business. You and your wife have multiple bank accounts. There is a main trading account for the business which is probably a cheque (check) account. You have one or more credit cards and if you can avoid debt and interest these are actually savings type credit card accounts. You may have a credit facilty against the mortgage of your home. This account is flexible because you can withdraw or deposit to it at will. You can use this facility or your credit/saving card accounts to back up the cash flow of your business. You have online banking and all these accounts are linked. You can top up these accounts from your business account. The credit card/savings accounts are mainly personal but you can easily pay bills or buy items with them. So you have quite a mix of business and personal. It is not illegal nor a road to disaster. The Tax Department is content because you are not trying hide transactions. Everything is transparent because what is in the bank accounts matches what is in the books.

So once having all your transactions in one place, the separation of business and personal is the next step.

Do you need to understand Owners Equity within double entry accounting? No. You just need to separate personal and business. BanktoBook makes this easy by just assigning a business percentage to your categories. Office Supplies and Office Purchases are 100% business. Electricity may be 10% business. The target is to assign percentages that the tax department will accept as reasonable.

Why is BanktoBook 'the accounting system for people who don't want a mainstream accounting system'?

BanktoBook - The Bank-in, Book-Out gateway for ultra-easy accounting

You download transactions from your bank accounts.
BanktoBook imports these bank transactions.
It has a rules engine to automatically categorize them. This is why it is accounting by rules.
It can detect cheque numbers, invoice numbers and special reference numbers.
You only edit the ones that do not match a category or require a distribution/split.
Sorry, as the hardest time is the first time. Once your rules are in place it gets easier and easier.
It will work for most countries and bank accounts.
It does not insist on storing your banking logon details.
It is a good solution for people who want the minimal effort to get their data to a tax agent.
It is a good solution for people who don't need a mainstream accounting system
or for people who see it as a useful gateway to another system.

History

The terms bookkeeping, cashbook and accounting have a history. What is a cash book in accounting? What is accounting?

Cast yourself back to when there was no internet.
Go even further back to where there was no computers and no software.
Accounts were done in a book - handwritten.
Wages were paid in cash.

By the way, we understand that there are many countries today who are in the process of making the transition from physical computers. In some ways, these are at an advantage because other countries have already been through the transition and now software exists to make it easier.

So Bookkeeping was primarily a handwritten record of income received and expenses paid.
The book/s had to allow for categories which could be manually added up to see where income came from and expense went. Because they primarily dealt with cash, the books were called cashbooks.

It was called cash because it was income and expense. There was no EFT, EFTPOS, credit cards and no internet banking. Even cheques were treated in a similar way as cash and these were subject to clearance by the bank. Cheques made bookkeeping more difficult to operate. Why? Because cheques issued/received in one month may not be cleared by the bank until the next month and these had to be tracked and accounted for as previous outstanding and carried forward outstanding entries so that reconciliation could be accomplished.

So a cashbook was literally for cash. It evolved that if the cashbook was balanced (reconciled) to the bank account then the cashbook was proven to be a correct record. Untold hours have been accumulatively spent reconciling cashbooks to bank accounts.

Also, a cashbook was typically several books rather than one.

Today, in the 21st Century, cash is becoming used less and less.

Today, with BanktoBook, means you do not have to worry about outstanding cheques. Cheques (checks) are accounted for on the day they reach the bank account. You do do not need to reconcile with the bank except for an overall balance check. This is because BanktoBook uses your bank account transactions, automatically categorizes them, and produces a Category report that can go straight to your tax agent.

Today, we do internet banking.
We transfer funds between accounts.
We pay bills from a computer.
We use cheques (checks) less and less.
We use cash less and less.
Wages and bills are paid directly using bank accounts.

But we still use the term Cashbook. It has an entrenched understanding. We could call it an Income and Expense Book. But CashBook is one word and well established. Today, it is not necessarily cash. It is bank verified transactions.

That is where BanktoBook is a 21st Century solution. Please read on... or follow the next link.

What is 21st Century Accounting? Click to follow...

Bookkeeping and Accounting

Historically, bookkeeping was performed by a bookkeeper and accounting was performed by an accountant.

The separation of duties and the careful selection of Accounting Apps can lower your business cost. You want the bookkepper to focus on transaction entry, categorisation, splits, and reconciling with bank accounts.

The Accountant focuses on the final prepartion of books at year-end, satisfying the tax department and other regulatory bodies, dealing with assets, depreciation and liabilities, balance sheet, tax liability and duductions, advice for optmising or legally reducing tax. An accountant will always want to use a mainstream accounting system. The bookkeeper needs to hand over receipts and payments reconciled and balanced to bank accounts.

Accounting should be primarily about a person/business knowing where it stands financially.
But in the final analysis, in the real world, it is mainly about tax preparation and tax reporting.
It is about satisfying government requirements.
The other primary benefit is that this creates good financial records and gives you the big financial picture.

There are two main methods of accounting

There is single-sided entry and double-sided entry. Typically the bookkeeper did single sided entries and the accountant did double-sided entries.

BanktoBook is single-sided entry.

There are two main aspects to accounting

There is cash accounting and accrual accounting.

BanktoBook is cash accounting.

Cash Accounting

Cash Accounting is where you report to the government (tax office, IRS) on the basis of income and expense or money received and money paid.
With BanktoBook, we could say "money in or out of your bank account".
Money that is transacted through a bank account is more easily verified as a true and correct record.

If money (cash) is never banked it is likely to never be declared and there may be no proof that it existed.
Cash relies on someone manually keeping records.
This is not desirable to the tax office.
BanktoBook encourages users to always bank cash received.
If it is not banked then it does not automatically appear in BanktoBook and a separate record must be kept.
It is not automatic but there is a way to manually account for cash transactions. There can still be petty cash.
BanktoBook has a feature where a transaction can be split/distributed into multiple categories. This can be for cash income received or cash expenses.

For example, say you withdraw $300 in cash from an ATM. Then you spend it on a variety of things. Some are personal and some are for business.
Rule number one is keep receipts.
To begin with, BanktoBook will normally only show a cash withdrawal of $300 in a category called "Cash Withdrawal". If you select this transaction it can be distributed into many categories according to each receipt. It's that easy. It cannot get easier because no automated system can do better.

Cash transactions can also be manually created and uploaded to a special Cash Account.

BanktoBook is a solution for cash accounting based on bank accounts.

Accrual Accounting

Accrual Accounting is where you report to the government (tax office, IRS) on the basis of purchase and sales invoices raised. This means you get taxed on on the potential money spent or potential income received rather than actual. Potential is also called accrued. You can claim tax deductions on purchase invoices raised and pay tax on potential income from sales invoices (before the money is received). Most larger businesses operate this way and will choose a mainstream accounting system.

BanktoBook is cash accounting and a solution for gateway accounting where bank transactions are categorized and then exported for further import into another system.

There are multiple modules in accounting.

Modules are such things as Income and Expense (Receipts and Payments), Budgets, Debtors and Creditors (which include Sales Invoices and Purchase Invoices), Payroll, Stock, Fixed Assets and the General ledger.

The Debtors module is also called Accounts Receivable.
It is where sales invoices are raised and when receipts come in, they need to be matched to sales invoices. Unmatched ones become outstanding debts and these require special attention for collection of money. Of course, income receipts can be for things other than sales invoices, so Debtors is a sub-set of income.

Similarly, Creditors (Accounts Payable) is a sub-set of expense.

BanktoBook is NOT a complete debtors or creditors system. It does NOT print invoices. However, it does have debor invoice tracking. This is the easiest method for people who don't want a mainstream accounting system.
It has a powerful rules engine for extracting cheque numbers, invoice number and reference numbers.
It can export income and expense in multiple formats.
Then it becomes a gateway to other accounting systems.

BanktoBook is NOT stock, or fixed assets, or general ledger, or payroll.

BanktoBook has budgets. It is implemented in the easiest way possible. One could write much more on budgets but the best thing is to try it. We even encourage you to try mainstream systems that have high budgeting strengths and see for yourself how difficult and detailed it can be. Then come back and try BanktoBook.

GST, VAT and Sales Tax

Countries such as Australia, New Zealand (NZ) and Canada call it GST which stands for Goods and Services Tax. In Europe it is called VAT which stands for Value Added Tax. In the USA and other countries, it is called Sales Tax. These three are essentially sales tax but the difference is that a value added tax (GST and VAT) is refunded to all parties in the chain of production other than the final consumer. BanktoBook does not connect online to any Tax Office nor remit taxes collected (BAS Return). However, the Category Listing contains the essential information.

Tax Software

The BanktoBook product will help you to optimise your income tax return. We are not tax advisers or tax accountants. However, we have partners, associates, advertisers or just helpful links.

Tax Liability

The tax office is not out to get you. It is out to get the taxes owing. With BantoBook your category report shows all transaction through your bank accounts. If you mis-categorise a transaction, it is different to trying to hide transactions. Trying to hide transactions is an offense. Failing to categorise transactions is a liability but it may not be construed as trying to hide or not report transactions. The advantage of BanktoBook is that you have a more solid case for attempting to categorise transactions and that all transactions are visible. It is an open system. The tax office should like the fact that all transactions are visible and are confirmed as genuine transactions through your bank accounts.

Income and Expense Report

We call this the Category Listing. Categories are otherwise known as general ledger accounts within the chart of accounts. They are called categories as part of making it easy to understand and use. The income report section comes first and is followed by the expense report. Business and personal bank account transactions can be mixed and a special business portion provides for part business and part personal. GST, VAT or Sales Tax is also shown as part of the report template. A summary section at the end of the report provides the tax on purchases and tax on sales figures. In Australia, these can be used for GST and the BAS return. This report is suitable for sending to your tax agent.

The transactions come from your online bank account which can be for business accounts or personal banking accounts.

The Category Listing can be easily scanned to provide visual tracking of the allocation of categories. Changing an entry to a different category is easy. Changing the business portion or tax rates is also easy. One can make the changes and rerun the report which then shows the latest status. If you have a tax agent, then they can log to your account and make the changes for you.

Investments

BanktoBook can keep track of your investment income and investment expense. The details may come from a business account, a personal account, a credit card account, a loan account, a term deposit account, a retirement fund, a superannuation fund, or basically any bank or financial institution account.

It may be property rental income, income from shares or other investments. Likewise it can keep track of your investment expenses. It is easy to track income and expense on investments and these can usually be automated by rules.

You just import bank or financial institution account transactions into BanktoBook, and the category listing shows your categorised investment income and expense.

It is that easy.


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