Sweep Accounts

What Is a Sweep Account?

A sweep account is a bank or brokerage account that automatically transfers amounts that exceed, or fall short of, a certain level into a higher interest-earning investment option at the close of each business day. Commonly, the excess cash is swept into a money market account. 

In short, a sweep account automatically transfers cash funds into a safe but higher interest-earning investment option at the close of each business day.

Sweep Accounts in Vantaca.

Setting up a sweep account in Vantaca is no different from adding regular Bank Accounts on the Association > Bank Accounts screen.

Once the Sweep Account is in the system, there is no automatic process to track these transactions. Use the Post Deposit and Post Expense features to write the Book-side Items to reconcile against the Bank's automatic daily transactions. 

Bonus: Slight Automation

It would be possible to use Association Service Contracts the Auto-Post on reconciliation to Automate the transfers out of the Operating Account. 

Using the guide found in the "On Reconciliation Auto-Posting" section of Association Service Contracts – Using Service Contracts to Automatically Post or Create Invoices, it would be possible to automate half of the transactions for your Sweep Account. Post Deposit items would still need to be entered on the Non-Operating side. 

Note: Your Bank may assign the same account number to your Sweep Account and your Operating Account. If that is the case, pay attention to the Statements that are uploaded for each account. If issues arise, reach out to your bank to have them change the account number for your sweep account.