Accounting for savings pots within one bank account
I am "one man band company" and use Mettle Bank in the UK. It offers the the facility to put money into "pots" so that I can save for things such as Corporation Tax, VAT payments etc. This is basically a bank account within a bank account and one which I find very useful. The downside is that there is no obvious means to keep track of what is in each pot within Xero and complicated by the fact Mettle does not stream the total in each pot via the connection only the total amount with the bank account itself. Within the Mettle app the balance that is displayed is the cash balance between the total in the bank and what is in the pots which I find very useful as that is the amount of "unallocated" cash I have available. What would help is an automated means of keeping track of the transfers in and out of the pots even though they can't be reconciled and a display of the total in the "pots" and the unallocated cash the sum of which will match the total in the bank account. I've looked at using the tracking facility but that doesn't seem to be appropriate. If this can already be done, can you tell me how please.
Neil Peers
shared this idea
Hi Neil, perhaps worth engaging your accounting advisor on, however from the sounds you could create 'suspense' accounts in your chart of accounts to reconcile these amounts from your bank account too. Effectively when you make you create a transaction that is related to the amount that's been allocated to a pot you could then make a payment on the transaction to that 'pot' account in your organisation. This way you could run the Account Summary report to keep a constant track on the amounts you have unallocated in your pots.