Can I operate a suspense account?

The terminology 'Suspense Account' refers to a catch-all, 'miscellaneous' or unknown category within your category structure (general ledger or Chart of Accounts).

It is often used by bookkeepers to temporarily record entries they are not sure where or how to allocate until they get more information.

Suspense accounts are cleared regularly, once the bookkeeper has enough information about the transaction to move it to the correct category.

Suspense account in ExpensePlus

You can create and use any category in ExpensePlus as a 'suspense' account, either in your general fund or in a specific fund.

You may like to call it 'suspense account', perhaps with a numeric or alphabetical prefix which will set it apart, for example: 'Z- SUSPENSE ACCOUNT'. 

Where this is the case, choose which users to give access to the category to, and then build into your weekly or monthly workflow the process of reviewing and reallocating any necessary entries.

Whenever you prepare a report for analysis (either monthly financial management reports or annual end-of-year accounts), you should aim to clear out the Suspense Account (i.e. edit and reallocate transaction categories to achieve a zero balance) after which point the category can be ignored. It will have served its temporary function and no longer needs to be reported on.

Note: until the items included in the Suspense Account category have been reallocated, the total in this category will need to be reported on as although it will be inaccurately described, it will affect your financial position.

Business card purchases

You can create a suspense account for business card purchases where business card users have not entered purchases.

Learn more about this here.

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