Ctrlk
For the complete documentation index, see llms.txt. This page is also available as Markdown.

Passthrough Accounting

Why does Chariot recommend Asset Accounting?

Chariot recommends treating your Chariot Deposit Account as a financial asset on your chart of accounts. Under this approach, reconciliation happens directly against deposits as they settle in Chariot, reducing manual matching work and making reconciliation significantly easier to manage at scale. See Accounting & Finance Teams.

Passthrough Accounting Challenges

Passthrough Accounting treats Chariot as a clearing account rather than as a bank account on your chart of accounts. Under this approach, revenue is typically recorded when funds arrive in the organization’s primary operating account rather than when deposits settle in Chariot.

While this workflow is possible, Chariot generally does not recommend it because it introduces additional operational complexity and increases the risk of reconciliation errors over time.

The primary challenge is that outbound transfers from Chariot are not tied to specific deposits.

For example, multiple inbound deposits may later be combined into a single outbound transfer, and your operating bank statement will not show which deposits make up that transfer.

As a result, organizations using PassThrough Accounting must maintain their own mapping between:

  • Deposits inside Chariot

  • Outbound transfers

As payment volume grows, this workflow becomes significantly harder to manage and reconcile accurately.

How It Works

  1. Match Deposit Increments: Move funds out of Chariot in the exact amounts they were received so each outbound transfer maps cleanly to a specific deposit or group of deposits.

  2. Tag Deposits Before Transferring Funds: Before initiating a transfer, tag the deposits associated with an internal reconciliation reference (i.e., transfer date, Batch ID). This creates a traceable relationship between Chariot deposits and outbound operating account transfers.

  3. Surface Identifier On Donations: Many organizations use the Relation Property so the deposit reconciliation identifier appears directly on associated donation records.

Last updated

Was this helpful?