Accounting Syncing - Clearing Accounts and Duplicated Payments

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When a program like Halaxy syncs to an external accounting package, an issue can occur when you sync payments into the same account in your accounting package that you use to sync bank transactions, causing income to be double-counted. This is because programs like Halaxy do not have access to your bank account; therefore income is counted when the invoice is marked as paid, not when it actually appears in your bank account. Then your bank account feed syncs the actual money going into your account as income, creating a double-up.

As a simple example:

  1. Your sales invoice in Halaxy is synced, along with a synced payment to your bank account ledger in your accounting package, showing that you made some income (e.g. your fee is $140.00, so you get 140.00 CR)

  2. Then the actual money actually comes into your account (140.00 CR), which is synced again to your accounting package

  3. You now have 280.00 CR total in your accounting package, which is incorrect.

You have two options to prevent this:

  • Configure Halaxy to sync invoices but NOT payments. Then you manually reconcile each sales invoice in your bank account by manually comparing your invoices with each incoming transaction in your bank account (i.e you match the $140 invoice with the $140 that came into your account).

  • Configure Halaxy to sync payments into a clearing account instead of your actual bank account. It is best to use a different clearing account for each payment type (EFTPOS, BPAY, cash etc.). A clearing account is a temporary "sorting" account - you can use it to record payments before they're actually received. At the end of the day, you create a bulk "receive money" transaction from your bank account coded to the clearing account to reconcile. This should zero out the clearing account.

The advantage here is that rather than needing to reconcile every single invoice, you can simply reconcile the total of your invoices for the day with the balance in each of your clearing accounts. If the totals do not match, you can investigate further.

External articles you can share with bookkeeper

Xero and QuickBooks have articles on how to set up a clearing account. Please note that these articles are intended for accountants. Please read/share these articles with your accountant or bookkeeper, who can provider further advice.

Handling payment processor receipts in Xero

Reconciling bulk payments in Xero

Set up a clearing account in QuickBooks

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