Record interest received

As there is no VAT in interest received from investments or the bank, this can be recorded in the Transfer Transactions component.

First, select the component, either by clicking on the Transfer Transactions icon, or by choosing General > Transfer Transactions from the main menu.

There are four fields which MUST be completed for the transaction itself to be considered complete by the software: Tax Date, From Account, To Account and Total Amount. There are further fields which can be filled in to embellish the transaction with extra information, such as Reference.

Next, click the Accounting Software button add Create a new transaction button in the top toolbar. This adds a new transaction line to the table.

Enter the date in the Tax Date field. As you start typing, a pop-up calendar will appear. You can either click on the required date, or type it in manually. The software will recognise most date dividers, such as full stops, slashes, etc.

The From account will be either a dedicated Interest Received income account or the default Other Income account. The To account will be your bank (if it is bank interest you are receiving). Please see image below:

Accounting Software screenshot interest received example transaction

It is important that you are aware this is income from interest as it will usually already be taxed at source, so make sure that is clear when you fill in your tax forms at year end.