Sweep accounts in banking
I am curious as to how you handle a sweep account in banking. When reconciling at month-end, there is typically one transacation remaining related to the sweep account. Other posts suggest "ignoring it" as it is self-correcting in the following month. Some suggest posting sweep transactions each month to a sweep account.
My initial approach is to set up a sweep bank account, enter only the uncleared transaction each month, and transfer funds between the accounts. In that way, you will be able to reconcile both bank accounts to teh statement provided without having to enter numerous transactions each month that are self-clearing.
So, what method to you prefer? If neither, what might be your approach?
I teach Quickbooks at the Community College and I am always looking for interesting, out-of-the-ordinary information to demonstrate for students.
Sierra Community College
Business & Technology
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