In this article we introduce Nook Wallets, how they're set up and how to get the most out of them.
Upon the successful verification of the required Ultimate Beneficial Owners (UBOs) and Directors, a Nook wallet is created for your company's legal entity. This guide provides an overview of what a Nook wallet is, how it functions, and how it can be used as a key facet of your financial operations.
What is a Nook Wallet?
A Nook wallet is an Electronic Money Institution (EMI) account that operates similarly to a bank account, though Nook itself is not a bank. This wallet is the source of your payments, offering much better support for scheduling and executing bulk payments compared to traditional bank accounts.
Setting Up Your Wallet
Once a wallet is opened for your company, Nook will create a corresponding new bank account in your accounting software specifically for the wallet. This integration allows Nook to maintain constant reconciliation of this account through auto-payment reconciliation, ensuring your financial records are always accurate and up-to-date.
How to Think About Your Wallet
Your Nook wallet can be considered in two main ways:
-
As a Payment Method: If used as a payment method, the wallet typically maintains a zero balance between payment runs. Funds are added just before a payment run is due. This approach helps build confidence in using Nook for financial transactions.
-
As an Operating or Trading Account: For those with sufficient cash flow, maintaining an operating balance in the wallet is definitely beneficial. This eliminates the need to deposit funds for every payment run. Regular, fixed monthly deposits can be set up via a standing order from your bank account, making this the most efficient way to utilise your Nook wallet.
Deposits and Withdrawals
You can link your external bank accounts to Nook to deposit funds into your wallet easily. This feature not only allows for straightforward transfers but also provides a comprehensive view of all your account balances within Nook. Additionally, Nook automatically reconciles any transfers between your wallet and bank accounts in your accounting software, if you have your bank accounts connected.
FX and International Payments
Nook supports international payments through its currency wallets, enabling you to pay overseas suppliers as easily as local ones. If you have funds in the required currency, they can be transferred into your Nook wallet using the local bank details provided. For currency conversions, Nook offers competitive exchange rates, which you can check our live rates here.
Final thoughts...
Nook wallets offer a flexible and efficient solution for managing company finances, from simplifying supplier and payroll payments to facilitating international transactions. Whether used as a simple payment method or as a comprehensive operating account, the Nook wallet integrates seamlessly with your accounting software, helping to streamline your financial operations.