How to Work with Bank Accounts

This guide explains why each entity should have its own bank account in RAAMP and shows the exact steps to create a properly configured, property-specific bank account and subaccounts in the Chart of Accounts. Following it prevents reconciliation problems, clarifies responsibility for bank charges, and preserves full accounting functionality by ensuring transactions are recorded in subaccounts.

12 steps

**Before You Begin:** **Bank Account Structure** Property → Root/Header Bank Account → Operating/Reserve/Other Subaccounts A **different physical bank account** generally means a **different root/header** account. The **root/header should be property-specific.** Bank Accounts in RAAMP can be used across multiple entities. **However, it is not recommended to do so.** Using a single bank account for multiple entities can create issues with reconciliations and requires understanding which company should assume the bank charges. **The preferred method is to have one bank account for each entity. That means each bank account should be property-specific.**

How to Add a Bank Account in Chart of Accounts

From the navigation menu, select **Accounting > Accounts.** You can select the **+ icon** to go directly to **Add New Account.**

In the **Accounting** module, you can use the tabs across the top to access **Accounts.** Select the **Accounts** tab **>** Select **New.**

Select **Account Type** to view the dropdown menu > Select **Bank.**

**DECISION POINT:**\ \ **Separate Physical Bank Accounts:** If reserves, security deposits, or other funds are held in a separate physical bank account, create a separate root/header bank account in RAAMP for that account. \ **Do not select "Is For Reserve" on the main bank/header account simply because the bank contains reserve subaccounts.** \ \ *Select this option only for an actual reserve subaccount.* Reserve accounts are still included in bank reconciliation without this designation; the setting primarily affects cash-flow-after-reserves calculations and distributions.

Complete the information accordingly. **Do not rely on prefilled information without verifying it against the property's banking documentation.**

**REMINDER:** The preferred method is to have one bank account for each entity. That means each bank account should be property-specific.

Select **Save.**

If you are creating a header/root account, the **Add Bank Subaccounts** box will appear. This is one way you can add the subaccounts.\ \ Select **Add Bank Subaccount** **>** Complete the information > Select **Save.** **Why are you having to do this?** \ *Transactions can only be recorded in subaccounts. Requiring bank accounts to use a hierarchy ensures that if the need arises to add additional subaccounts, it's a smooth process. If this weren't a requirement, functionality would be reduced when reconciling bank accounts.*

Select the **Property/Company Specific checkbox.**

Select **Allow new property to use this account.**

Select the **Property/Company** to make the bank account specific to **>** Select **Save >** Select **Save.**

Select **Save** to finalize the bank account configuration.

Select **Back To List** to return to the **Chart of Accounts.**

Confirm the bank account was added. Select the **Search Accounts field** **> Enter the account name** you just created **>** Select **Enter** or the **Magnifying Glass icon.**

Related Tutorials: [How to Link and Verify an AR Account in RAAMP](https://support.raamp.com/wiki/280)\ [How to Link and Verify Bill Pay Account (RAAMP Pay)](https://support.raamp.com/wiki/283)