IFRS for SMEs / Categorising bank transactions for IFRS for SMEs: a bookkeeper's guide
Categorising bank transactions for IFRS for SMEs: a bookkeeper's guide
Decide what the line is before choosing an account
Most categorisation errors in small-company books are not wrong expense accounts. They are lines that should never have reached the income statement at all: a transfer between the company's own accounts, a payment to SARS, money from a director, a loan instalment or a laptop. Each of those belongs on the balance sheet.
Ask what the transaction is first. Only then choose the account. The guides below take each common case in turn, with the IFRS for SMEs paragraph that decides it.
Start with a clean bank statement
Categorising is easier when the statement has been converted accurately, with the running balance checked line by line. SightScan converts statements from the major South African banks and reconciles every line to the balance on the statement.
The guides
- Bank transaction categorisation table for IFRS for SMEs
- How to categorise money to and from directors
- When is a purchase an asset and not an expense?
- How to categorise loan and vehicle-finance instalments
- How to categorise payments to and from SARS
- Customer receipts: revenue or settlement of an invoice?
- Transfers between the company's own bank accounts
Convert a bank statement
- ABSA statement converter
- FNB statement converter
- Standard Bank statement converter
- Nedbank statement converter
- Capitec statement converter
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