I use Starling Bank for my company and they give you the option to set money aside in a section called Spaces also known as Goals.
The money still stays with Starling in the same account but is deducted from the balance and available funds.
I have set up one “Goal” called VAT where I add money for tax returns. When I need to use this money, I then select withdraw and place the desired amount back into my available funds.
I was wondering what I should do with regards to my accounting to account for this?
When I check my balance on Starling compared to the balance on Quickfile, there is a higher balance shown on here which equals the available funds + “Goals” total.
Hopefully that makes sence to those reading…
So I suppose what I am asking, is, should I set up a different account to account for the “Goals” section? I was unsure what to do as technically I am not moving money out of the account, the money starys there but is not available to spend.