Bank Account Thresholds
The bank account thresholds control the variables for your alerts and determines whether an alert triggers, its priority rating and who it is assigned to. The alert settings make sure the right information, is served at the right time, to the correct team member.
When: These trigger daily by looking at the actual bank balance versus a target balance you have set.
Why: Being notified when you get to a certain threshold it allows you time to make decisions about how to plug a gap or where to invest funds if you have an excess of cash. You may have an agreement with a client about transferring cash between accounts if they hit a certain amount and this will help you without constantly checking the bank each day.
How: We display the last 13 weeks of bank balances versus the previous 13 weeks to show any trends, peaks and troughs in cash. This can act as a guide as to whether you need to amend the threshold. Other information displayed is the trigger amount the bank balance and variance. The % of total balance is showing you how much is in this bank account as a % of all your bank account balances in Xero.
To ensure your alerts work out of the box they come loaded with Hindsight defaults. All bank accounts have a default of below £10,000. We appreciate every client is unique so you have complete flex over each client but using defaults gives you a good starting point. You can add your own practice defaults to start from a point that is better aligned with how your practice operates.
Amending defaults when you connect an organisation will make sure from day one you are looking at relevant information per client. The alerts triggering and the priority of an alert also drive the Heart Rate so it is important to spend some time and get this right.
You can amend the bank account thresholds from within an alert on a one by one basis but we would recommend doing it from the client bank account thresholds so you can address them all at once. If you do it one by one when an alert triggers it means you may miss something for that client if an alert never triggers.
Clients > select client > Bank Account Thresholds
As well as the alert settings you can also control the bank account thresholds within the client record. For each client any account recognised as a Bank account in Xero is pulled across so you can set thresholds for the balances either on a % or £ amount. This will enable you to know when an account goes above or below a certain amount or percentage. Useful when you have an overdraft or need to sweep a balance on an account.
The same can be done using the Credit Card Thresholds.