How to manage bank accounts

Provestor uses accounts to organise your property income and expenses. During setup, the app creates accounts based on how you manage banking for your rental properties. This guide explains the different account types, when to add more accounts, and how opening balances work for reconciliation.

If you're still setting up Provestor, see How to set up bank accounts for the onboarding flow.

Account types

Provestor supports four account types: cash accounts, bank accounts, credit card accounts, and letting agent accounts. Each serves a different purpose depending on how you manage your property business.

Cash account

A cash account tracks property income and expenses that don't go through a dedicated business bank account.

When to use a cash account:

  • You don't have a dedicated business bank account and use your personal account for everything
  • You have a dedicated account but occasionally pay expenses with personal cash or cards
  • You want to keep record-keeping straightforward

Provestor uses cash basis accounting, which means you only record money in and money out when it actually happens. There are no invoices, debtors, creditors, or accruals to track. You add the income and expenses that belong on your tax return, without importing every personal transaction from your bank.

For landlords without a dedicated business account, using a single cash account is the most straightforward approach. You enter property-related transactions as they occur and ignore everything else.

For more on how cash basis accounting works, see Cash basis accounting.

Bank account

A bank account in Provestor represents a dedicated business bank account you use for your rental properties.

When to use a bank account:

You have a separate bank account where most or all transactions relate to your property business. This could be a business current account or a personal account you only use for property income and expenses.

Benefits of mirroring your bank account:

If you have a dedicated account, you can upload bank statements to Provestor to import transactions. This lets you:

  • Import all transactions at once instead of entering them manually
  • Check that you've captured everything by comparing balances
  • Reconcile your Provestor records against your actual bank balance throughout the year

You drag and drop statements into Provestor, and the app imports the transactions for you to categorise.

For details on uploading statements, see Uploading bank statements.

Credit card account

A credit card account tracks expenses you pay with a credit card used for your property business.

When to use a credit card account:

You have a credit card where some or all transactions relate to property expenses. This could be a business credit card or a personal card you use for property purchases.

How it works:

Credit card accounts work similarly to bank accounts. You can upload credit card statements to import transactions, or enter expenses manually. Each expense is recorded on the date you made the purchase (not when you pay off the card).

Under cash basis accounting, expenses are recognised when you pay them. For credit card purchases, "payment" happens when you make the purchase, not when you later pay the credit card bill. This prevents timing issues where you'd record the same expense twice.

Letting agent account

A letting agent account tracks rent your agent receives on your behalf and expenses they pay from those funds.

When to use a letting agent account:

You work with a letting agent who collects rent and pays expenses on your behalf. You create one letting agent account for each agent you work with.

How it works:

You record transactions from your agent's statements here. For example:

  • Rent collected by the agent
  • Expenses paid by the agent (repairs, maintenance, agent fees)

Recording transactions from agent statements gives you a complete breakdown of income and expenses each quarter, rather than just tracking the net payment you receive. HMRC requires this level of detail for Making Tax Digital.

Under cash basis accounting, rental income is recognised when the agent receives payment from the tenant, not when the agent later transfers net funds to you. This prevents timing distortions where agents hold money for several days or weeks before remitting it.

For detailed guidance on setting up and using letting agent accounts, see How to set up your letting agent and Recording from agent statements.

How to add accounts

You can add more accounts after setup if your situation changes.

Common reasons to add accounts:

  • Multiple letting agents — If different properties are managed by different agents, create a separate account for each one
  • Savings account — If you keep property income in a savings account and occasionally transfer funds for expenses, add it to track interest and transfers
  • Additional business accounts — If you open another bank account for your property business
  • Credit card — If you start using a credit card for property expenses

To add an account:

  1. In your business workspace, open Settings
  2. Choose Bank Accounts
  3. Choose Add Account
  4. Choose the account type
  5. Add the account details (name, short name)
  6. Save your changes

Account details:

  • Type — Choose Cash, Bank, Credit Card, or Letting Agent Account
  • Name — Full name for the account (e.g. "Nottingham Building Society Mortgage")
  • Short name — Brief label for quick reference (e.g. "Mortgage")

The short name appears in transaction lists and makes it easier to identify accounts at a glance.

Opening balances

When you add a bank account or credit card account in Provestor, you can optionally set an opening balance. This is an advanced feature that helps with reconciliation.

How it works:

If you enter your account balance as of a specific date (for example, 6 April at the start of the tax year), Provestor can show your running balance throughout the year. You can then compare this balance against your actual bank statements to confirm you've recorded all transactions.

When to use opening balances:

  • You have a dedicated business bank account or credit card
  • You want to check your records are complete by matching balances
  • You're starting to use Provestor partway through the tax year and want to carry forward the correct balance

You can't set opening balances during onboarding, but you can add them later through account settings.

How to add an opening balance:

  1. In your business workspace, open Settings
  2. Choose Bank Accounts
  3. Choose the account
  4. Add the opening balance
  5. Save your changes

Throughout the year, check that the balance shown in Provestor matches your bank statements. If they don't match, you've likely missed a transaction or recorded something twice.

Tip

Opening balances are most useful if you set them at a clean break point, such as the start of the tax year (6 April) or the start of a quarter. This makes reconciliation straightforward.

Opening balances and reconciliation:

If you upload bank statements regularly and set an opening balance, you can use the running balance in Provestor to verify your records are complete. After importing and categorising transactions from a statement:

  1. Check the account balance shown in Provestor
  2. Compare it against the closing balance on your bank statement
  3. If they match, your records are complete for that period
  4. If they don't match, review your transactions to find missing or duplicate entries

This gives you confidence that you've captured all income and expenses correctly.

For more details on using opening balances during statement uploads, see Uploading bank statements.

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