How do I account for bank interest in Alto?

It is common practice for businesses with client accounts to have an arrangement with their bank to put all bank charges and interest related to their client account through their business account instead.

This is something you may wish to consider. Therefore, if you don’t have this arrangement set up, and are receiving interest into your client account, there are two ways in which you can deal with it

  • Transfer the money out of your client account into your business account and not account for it on Alto. Your bank account statement will simply have contra entries

  • Create a contact on Alto, e.g. ‘Bank interest received’. You can then receipt bank interest onto this contact as Held Money, and then refund it when you are ready to move it to your business account

 

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