Reconciling daily interest payments

ChrisWalker

I have a Wise Business Account, and I’m looking to switch on their ‘interest’ feature. From what I can tell, they will pay interest into my Wise account on a DAILY basis.

How can I record this in Crunch without having to create an ‘Interest Received’ record every single day? Is there a way to do it, say, once a month - by creating one ‘Interest Received’ record for the total I’ve earned in interest across that entire month, and then reconciling it to all 30 (or 31) entries on my statement (assuming I will have a daily entry on my Wise statement for each interest payment)?

When I’m reconciling in Crunch, it looks like I can do this the other way round, i.e. reconcile one statement entry to multiple records in Crunch.

But I want to do it the other way round - reconcile one Crunch entry to multiple statement entries!

Or is my only option to record these each month as 30/31 individually reconciled transactions?

Thanks!

ChrisWalker

OK, so after further investigation, it seems as though Wise pay interest on a daily basis, so your balance increases on a daily basis, but this isn’t shown in your transaction list. The only way to get visibility of this is to download a statement, on which there is apparently a single line at the top that shows you interest made since the start.

So I have no idea how to reconcile this in Crunch now! Especially as my Wise balance will be increasing on a daily basis…

Katie

Hi Chris,

In Crunch, you can match multiple Crunch payments to one statement entry, but currently, it’s not possible to do this the other way around.

Wise not including the interest on your transaction list does make things a little tricky, but still manageable. What you’ll need to do is add an entry to your CSV file before you upload this to Crunch.

If you upload a statement once a month, you could add just one entry at the end of the statement for the total amount of interest you were paid. Then, in Crunch, you’ll also only have to record one transaction to match it to.

If you upload statements more frequently then you can still apply the same logic but would create an entry on the CSV and in Crunch for the total received just in the period your statement covers.

Hope this helps.
Katie

ChrisWalker

Thanks very much @Katie. I’ve also contacted Wise, who have confirmed that there is no way to get a date/time-bound figure on the interest you’ve earned - you can only see an ‘all-time’ figure of the interest you’ve earned on your statement, so I guess the only way is for me to manually calculate how much interest I’ve made in the last month, and then manually create an entry on my exported Wise statement indicating that amount, as you suggested.

I guess I’ll go with this approach. Thanks very much for your help!

vincenzost

I have the same issue.
I contacted Wise and they are not including the interest in the transactions CSV export.
This isn’t very pleasant. I hope they will include the interests in the CSV export.
In the meantime, I am not including them yet as I don’t want to manually update the CSV every time. It doesn’t make sense to me. I will wait until the end of the year and maybe add all the interests one time.
I will keep you updated if I get another solution from Wise.

ChrisWalker

vincenzost Thanks! I’m planning to do exactly the same. I will wait until my next self-assessment (next year) and then create a single interest record in Crunch for all the interest I’ve earned that year. It should be easy for the first year, because I’ve only just enabled the interest on Wise, so everything I’ve made by my next self-assessment will have been from this tax year. As long as I note down this figure, I guess it’ll then be possible to work out interest in subsequent years (although hopefully Wise will have improved their statements by then).

It seems strange that Wise won’t support this, as it’s a basic obligation to declare interest on your self-assessment for the purposes of paying tax on it. You normally have to provide a copy of your statement showing the interest too, so that will be awkward.

el_wise

Hello
I just signed up to this wise account with interest.
How did you manage to reconcile in the end?
It looks like your balance will never add up until you somehow reconcile this interests received.
By the way I’m using the automatic feed with open banking and then I just reconcile at the end.
Is your solution to add a manual CSV file with 1 entry and the balance difference?
Thanks!

vincenzost

So this is what I have done.
A few days before the end of the company year end, I disabled the interests on the account, changing the Wise account type to “cash”.
This will generate after a few days a new transaction on Wise with the total amount of interest accrued.
Please note that this transaction will not show on the list of transactions on Wise, but it appears only if you export your statements in CSV.
I am not sure how it works for automatic feed. It might work as well.
So after this I imported on Crunch the statement with this transaction and you can then record it on Crunch without problems.
I understand this might not be the correct way to do it, but I make sure the interests are recorded only once during the fiscal year.
Then after the new account year started, I changed the account type to “interest” again.
I hope it makes sense.

ChrisWalker

And this is what I’ve been doing…

I upload statements manually, rather than using the automatic feed, and I simply keep a note of my total all-time interest balance (the only figure that Wise gives you) each month when I do my invoicing. By deducting that total from the balance I recorded the previous month, I can then figure out how much interest I’ve earned in that month. I can then create an ‘interest received’ record in Crunch for the equivalent amount. So basically, I record interest received monthly. I appreciate this may not be the ‘correct’ way of doing it, but it was the best I could figure out, and everything seems to balance nicely.

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