Frequently Asked Question
Reference to Bank Account in PropPack is to the electronic banking transactions originating from an external bank account. This FAQ describes how to best go about switching from one external bank account to an other so as to cause minimal disruption within PropPack.
We assume that the original external bank account is to be closed down and the replacement external account is starting with a zero balance.
The main consideration for doing this with minimal disruption, is to fully understand the procedures detailed below and to follow them precisely.
Let us first define the basic operation ignoring potential practical problems:
- Decide on D-Day - a date when the old external account is to stop and the new one is to start.
- For a period before the switch, stop issuing payment instructions. If you are dealing only with electronic transactions then a day or two may suffice. If you are issuing cheques then you may have to stop a week or more before the switch. The point is to try and ensure that such transactions made before the switch do not end up being processed into the external bank account after the switch.
- Ensure that all automated payments out (Direct Debits and Standing Orders) are switched from the old to the new account.
- On D-Day transfer the total balance in the bank from the old external account to the new one.
- From this point onward the old external account should no longer be user.
- If any deposits are received into the old account then they must be transferred to the new one.
In practice steps 5 and 6 are likely to be problematic where the account in question is a Client Account with lots of tenants making automated electronic transfers into the account. It will take quite some time to get the tenants to transfer their payments to the new account.
Where this is a problem then please get in touch with us and we may be able to provide special tools that would assist with complex switching situations. Such customised assistance would not be covered by the standard support - an additional fee would be payable.
See the article here for a facility which allows a new bank account to be set up with the old bank account linked to it - thereby allowing the old to be run down but still used in parallel to the new one.