Bank Reconciliation - Accounting for separate '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
Hey Neil
We've reviewed this suggestion, and as Kelly mentioned earlier, one way you might do this is to create a suspense account for each 'pot', and code the transactions in your bank to the relevant account.
Another option might be to use a Tracking Category for these pots, with a separate Tracking Option for each pot.
Either way, you could run the Account Transactions Report against the bank account, and Group the report (such as by Tracking Category), to see the totals for each pot.
If you'd like to try this out before taking action in your own org, you can use the demo company to test it. 😊
