Managing liabilities in Xero

[Elsee]

While this may not be specific to Xero, that's what I use, so any generic info may be helpful to.

I currently have a single bank account, for my work. I have a small fortune sitting in there which are GST, tax and super liabilities. What I want to do is more those funds to a high interest bearing account.

The question though, is how I correctly track it in Xero? I am happy creating liability accounts in Xero, but don't know how I go about reconciling the funds when I change bank accounts.

I'm sure there must be a standard way of doing what must be a common requirement.

Kind regards, Elsee

[Couple It]

Elsee, simply create a second bank account in your chart of accounts (sit it just below your business account). You will spend the money from your business account and the "expense" will actually be your new bank account.

Once you have transferred the money to your new account, you will be doing two bank recs instead of the one.

Wendy