What Are Payment Accounts?
Recording payments for your Invoices & Expenses is not enough. It is also important to keep track of the accounts where the money comes to or goes from. That's why we have introduced Payment Accounts.
Payment accounts help you easily organize & track all your incoming & outgoing financial transactions in your business.
Whether it is cash deposits, withdrawals, employee salaries, reimbursements, or day-to-day expenses - you can organize & track all these transactions seamlessly with Payment Accounts.
From now on, when you make a payment record on Refrens, you will also have the option to capture the Payment Account details as well:
How to Create A New Payment Account?
Go to Accounting > Bank & Payments > New Payment Accounts to create a new payment account. Select the type of payment account you want to create and continue.
There are three main types of Payment Accounts:
Bank Accounts:
Add all types of Bank Accounts such as Savings A/c., Current A/c., Overdraft A/c., etc.
Employee Accounts:
Create employee accounts to manage & track salaries & reimbursements.
Other Accounts:
Create other accounts where your financial transactions happen such as wallets, UPI, Debit cards, etc.
Creating Bank Payment Accounts
To keep a better track of all the financial transactions happening across different bank accounts, you should maintain different payment accounts for each.
To create a new payment account for a bank, Go to Accounting > Bank & Payments > New Payment Accounts > Bank Account. You will see the following form:
Just add the basic details of your bank account such as A/c no., IFSC code, currency, etc. You can also add SWIFT and IBAN codes if you prefer.
If you are an advanced accounting user, the system will automatically create a new ledger when you add a new payment account.
In case you do not want to create a new ledger, but link the account to an existing ledger instead, you can do that as well by clicking on “Link to an existing ledger instead”.
This allows you to create different payment accounts linked to one ledger only.
Let’s see how this is useful. Let’s say you have bank accounts in three different banks - HDFC, IDFC, and ICICI. Now, although you might want to maintain different payment records for all these accounts, you may want to maintain them in a single ledger called “Bank Accounts”. This can be done by linking all of them to one ledger only. Like I have done below:
3 Different Payment Accounts - All Linked to one ledger account
(Another use case: Let’s say you have 3 different accounts at HDFC - HDFC Bank Current A/c., HDFC Bank Savings A/c., and HDFC Bank Overdraft A/c. In this case, you can link all of them with just one ledger account called “HDFC Bank”)
Creating Employee Payment Accounts
Having different payment accounts for all of your employees helps you better track employee costs such as salaries, reimbursements, and more.
To create a new employee payment account, Go to Accounting > Bank & Payments > New Payment Accounts > Employee Account. You will see the following form:
Here, you can add all the employee details such as employee name, department, payment currency, and more.
If you are an advanced accounting user, you can also create & manage ledger accounts for employee costs.
As you see above, you can either create new ledger accounts for all your employees OR you link them to existing ledger accounts.
For example, in this case, I want to link the “payment account of my employee Ronak” with the “Employee Salary” account. I can do that by selecting the respective ledgers as shown below:
With this, I can create different payment accounts for all my employees but I can manage all the transactions under one ledger account called “Employee Salary”.
Creating Other Payment Accounts
Not all your financial transactions happen through/with your bank or employees, you might have other accounts as well where financial transactions happen such as Payment Wallets (PayPal, Paytm, Amazon, Apple Pay, Venmo, Crypto-Currency Wallets), Debit Cards, UPI, etc.
In these cases, you can also create a separate payment account to track these transactions seamlessly.
To create a new payment account for other payment methods, Go to Accounting > Bank & Payments > New Payment Accounts > Other Account. You will see the following form:
Just add the account name, select the account type, and currency. In case you want to link this account to a “Bank Account” or an “Employee Account”, you can do that as well. For example, I have Linked my “HDFC Platinum Credit Card Account” with my “HDFC Bank” Account as shown below:
Payment Account Dashboard
Once you have added all the payment accounts, you can get a detailed overview of all the accounts and their ledger-wise transactions (If you’ve advanced accounting enabled.)
All your Bank Accounts will be visible under the “Bank Accounts” Tab
All your Employee Accounts will be visible under the “Employee Accounts” Tab
All your payment accounts - whether linked/unlinked with a bank/employee account - will appear under the “All Payment Accounts” tab.
Viewing All Transactions Under A Payment Account
To view all the transactions under a payment account, just go to that account from the payment dashboard > click “More” > View Ledger Statement
You will see the details of all the vouchers created for that particular account as shown below:
Adding Payment Account Details While Marking Payments
Maintaining Payment Account details helps easily track all the payments you made/received in an organized manner. Once you have added all your payment accounts on Refrens, it is super easy to add them while recording payments.
Just select the Payment Account from the dropdown and you're good to go! In case you want to create a new payment account, you can also do that directly from here!
That’s it! Start utilizing payment accounts to better organize & seamlessly track all your financial transactions.
Additional resources:
How to create salary accounts & record employee salaries?
How to record employee reimbursements?