How to record charge for setting up business account

ChrisWalker

A slightly difficult one to explain, so please bear with me…

I set up a Wise Business Account (multi currency). It has both GBP and USD accounts, but only the GBP account is linked to my Crunch (Zero) account.

There was a fee for gaining access to all the Wise services. I paid for this using a personal debit card (from a bank account not linked to Crunch), and this appeared as a credit in my Wise account activity, and that credit was then used to pay for the services, i.e. my Wise transaction history looks like this…

GBP xxx - ‘Added’ - to your GBP account
GBP xxx - ‘Paid’ - for your account details

When I click through to my GBP account in Wise, only the ‘credit’ to my account is listed (the use of that credit to pay for my Wise services isn’t listed, for some reason, even though it is listed under the top-level ‘All Activity’ for my Wise Account).

Therefore, when I connect to my Wise account through the Crunch Open Banking feed, it only pulls through this ‘credit’ transaction.

This means that, when I go to ‘Banking -> Accounts & Cards’ in Crunch, and look at reconciliation, I have ‘1 to match in bank’, i.e. just the credit/‘Added’ transaction mentioned above.

What type of transaction do I need to create in Crunch to reconcile this against? Do I enter it as a ‘Bank Deposit’ in Crunch, because I effectively paid money from another account into my Wise Business Account? It’s not an expense, because, as mentioned, for some reason there is no equivalent payment transaction for the use of this credit to purchase the Wise services.

If I do this, in Crunch it shows as a credit to my balance, even though there is no longer a credit in my Wise account, because clearly it was immediately used to purchase the services.

I think the problem stems from the fact that although my top-level overall account activity in Wise shows both the +GBP and -GBP lines, which balance each other out, when I open the details of the GBP account in Wise (which is the one linked to Crunch), it only shows the +GBP (credit) part of the transaction.

I guess I may need to ask Wise about this as well, but in the meantime I’d still like to know if ‘Bank Deposit’ is the correct type of transaction to record in Crunch for the ‘credit’ part.

Thanks!

HelenaMann

Hi Chris

Thanks very much for your post.

Let me discuss with our team of experts and we’ll come back to you!

ChrisWalker

Thanks @HelenaMann , I look forward to your reply! Wise don’t seem to be able to give me an explanation. The other option is I just mark it as a ‘personal transaction’ in Crunch, and therefore it won’t need matching. But I’m not sure if this is the right thing to do.

Then again, if I mark it as a ‘Bank Deposit’, as I suggested above, then it makes it look as though that credit payment is still in my Wise account, which of course it isn’t, because it was instantly used as payment for setting up my account.

TomFromCrunch

Hi Chris - my colleagues have had a look and have advised the following as a solution:

Record the initial Credit as a Bank Deposit to reflect this correctly in your accounts
Manually add the debit entry to the relevant .CSV and upload it, then create a new expense for Bank Charges and reconcile as usual.

If any transactions from that statement have already been reconciled, you’ll need to unreconcile the statement first before attempting to delete it. Follow this guide: https://help.crunchfree.co.uk/s/article/How-to-unreconcile-multiple-transactions

For help viewing and removing previous bank statements, follow this guide: https://help.crunchfree.co.uk/s/article/How-to-view-and-delete-bank-statements

For help adjusting and formatting a CSV manually, follow this guide: https://help.crunchfree.co.uk/s/article/Bank-statement-and-CSV-guide

ChrisWalker

Many thanks @TomFromCrunch. This was an approach I had considered, so it’s good to know I was on the right tracks! Presumably though, I’ll have to disable the Open Banking feed, because I currently see the message: “Wise Business Account is currently integrated with Open Banking so statements cannot be manually uploaded”. Although I guess there’s no issue with that, and I can safely reactivate the Open Baking feed again afterwards? Luckily nothing has been reconciled/matched yet against my statement, so I hopefully won’t need to worry about the links you posted.

Thanks very much!

ChrisWalker

@TomFromCrunch sorry, just one more question. The date on this charge for setting up the account is 8th March 2022. The Crunch help files suggest you should only try to upload CSVs for transactions in the current accounting period.

Given this was in March, i.e. prior to the current tax year, should I even be uploading it or reconciling it now?

Thanks!

MonticelliAtCrunch

ChrisWalker

If you began using Crunch Free in the 21/22 tax year, then this means they should be able to include transactions from 06/04/2021 onwards.

Anything earlier than this date wouldn’t need to be entered into their account.

If you require services that relate to an earlier accounting period, such as Self Assessment, this information can be provided as an attachment to a Self Assessment questionnaire in your account instead.

Hope that helps.

MonticelliAtCrunch

Chris. Will get back to you asap.

ChrisWalker

Thanks very much. I started using Crunch in early 2022, and the transaction in question is from 8th March 2022, so it sounds like there shouldn’t be an issue importing this transaction.

Thanks for your help,
Chris

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