Spaces in Starling bank account

SOLVED

I have a series of 'Spaces' in my Starling bank account to hold VAT or PAYE payments. These are just ring fenced parts of my bank account, not separate accounts.

How would you show these 'Spaces' within Sage. I could simply create 'new' accounts on the banking page and when I move an amount set aside for VAT into the VAT 'Space'... I simply log that as a transfer from the main account into a VAT account.. but strictly speaking, the 'Spaces' are not accounts.. 

I'm sure as long as they are accounted for it'll be ok but just wanted to hear best practice.

Thanks..

Parents
  • +1
    verified answer

    Hello,

    Here’s how you could handle it:

    First, set up Spaces as bank accounts in Sage. You can create new nominal accounts under the banking section for each space (VAT, PAYE). This keeps the Spaces separate from your main account while making it easy to monitor your balances for specific purposes.

    Next, record transfers as transactions. Whenever you move money from your main Starling account to a Space, record it in Sage as a transfer from your main account to the corresponding Space account. This mirrors the activity in your Starling account and ensures everything is tracked. Optionally, you could use journal entries for more detail if you want to make it explicit that these aren’t separate accounts. For example, you could debit the Space (VAT holding) and credit your main account. However, this might not be necessary unless you’re trying to align with more advanced reporting.

    Regular reconciliation is also important. Since Starling Spaces aren’t actual bank accounts, reconciliation isn’t required for these entries, but you should periodically check the total of your Spaces in Sage matches the totals displayed in your Starling account for consistency.

    Finally, consider the implications for reporting. If you’re using these Spaces for VAT or PAYE payments, make sure they’re reflected correctly in your reports, especially if they’ll affect your liability accounts.

    Your suggested approach of using separate accounts for the Spaces is absolutely fine. The key is consistency—once you’ve decided how to track them, stick with it across all your records. This ensures everything balances out at the end of the month and makes reporting much simpler.

Reply
  • +1
    verified answer

    Hello,

    Here’s how you could handle it:

    First, set up Spaces as bank accounts in Sage. You can create new nominal accounts under the banking section for each space (VAT, PAYE). This keeps the Spaces separate from your main account while making it easy to monitor your balances for specific purposes.

    Next, record transfers as transactions. Whenever you move money from your main Starling account to a Space, record it in Sage as a transfer from your main account to the corresponding Space account. This mirrors the activity in your Starling account and ensures everything is tracked. Optionally, you could use journal entries for more detail if you want to make it explicit that these aren’t separate accounts. For example, you could debit the Space (VAT holding) and credit your main account. However, this might not be necessary unless you’re trying to align with more advanced reporting.

    Regular reconciliation is also important. Since Starling Spaces aren’t actual bank accounts, reconciliation isn’t required for these entries, but you should periodically check the total of your Spaces in Sage matches the totals displayed in your Starling account for consistency.

    Finally, consider the implications for reporting. If you’re using these Spaces for VAT or PAYE payments, make sure they’re reflected correctly in your reports, especially if they’ll affect your liability accounts.

    Your suggested approach of using separate accounts for the Spaces is absolutely fine. The key is consistency—once you’ve decided how to track them, stick with it across all your records. This ensures everything balances out at the end of the month and makes reporting much simpler.

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