You will need to create new nominal ledgers for the Client Control and Client Bank in Xero. If you have multiple client bank accounts, you may wish to utilise nominal accounts for each physical bank account for simplicity.

You can create the Client Control Account as follows:

• Click on Settings > Chart of Accounts

• Click on Add Account

• Select 'Liability' in the Account Type drop down

• Enter a Code

• Enter a Name

• Enter an optional Description

• Ensure the Tax box is set to 'No VAT'

You create the Client Bank Account as follows:

• Click on Settings > Chart of Accounts

• Click on Add Account

• Select 'Current Assets' in the Account Type drop down

• Enter a Code

• Enter a Name

• Enter an optional Description

• Ensure the Tax box is set to 'No VAT'

Prior to completing a month to year-end, you will need to journal the client bank balances from LEAP into Xero and set up the journal to auto-reverse. This will ensure that each time you run through this process, you do not need to spend time working out the differences between each period end. Firstly, run the 'Client Accounts Trial Balance' report from LEAP as the reporting date you wish to prepare your Trial Balance.

Make a note of:

• The Total Client Ledger Accounts figure

• The Reconciled Cashbook figure

These should equeal each other - please report any imbalance to LEAP before proceeding. You should now log into Xero and post your journals as follows:

• Click on the + sign and choose 'Manual Journal'

• Enter a Description (e.g. 'LEAP Client Balance August 2024)

• Enter the Date

• Enter a date in the Auto Reverse Date field (any date prior to your next period end will be sufficient).

• Enter the details of the journal (Client Bank should be entered as a debit and the Client Control should be entered as a credit at the bank itself)

• Click on Post

• You will need to complete this for each client bank

Once this process has been completed, you can run your Trial Balance in Xero which will now include your Client balances. LEAP recommends that the Client Account Trial Balance report is included with any reports from Xero if saved electronically or on paper to support any audit.