You can keep track of your cash accounts just like any other asset. This gives you an overview of your cash allocation and, in the case of foreign currency accounts, allows you to monitor returns from currency fluctuations.
A cash account in Capitally refers to an account without interest. For information on tracking interest-based deposits, please refer to tracking Bonds and Deposits article.
Automatic Cash Tracking
Capitally can automatically update cash balances based on your transactions. Whenever a transaction involves spending or receiving cash, the appropriate amount will be debited from or credited to the corresponding currency account.
Configuring Cash Tracking
You can configure cash tracking in one of the following locations:
In Settings → Cash Tracking
When editing an Asset, in the Positions tab
When editing an Account, in the Positions tab
The configuration follows a hierarchical structure, with settings applied sequentially at the Project, Asset, Account, and Position levels. Additionally, the destination currency's configuration will be applied as well.
This approach allows you to control cash tracking for each account or position individually, depending on your tracking needs and the historical data available to you.
Enabling cash tracking
You can enable cash tracking using one of two methods:
On accounts with existing cash balance (default)
Everywhere
The first option tracks cash only from the moment of the first transfer, conversion, or account balance entry for the selected currency. This setting remains unobtrusive if you don't need cash tracking while maintaining accurate balances once you begin tracking.
However, if you forget to add or import the initial cash balance, it won't be tracked at all, and you may encounter discrepancies in your results. By selecting the Everywhere option, balances will always be tracked, making any discrepancies with your actual balances immediately visible.
Tracking all transactions in a single currency
Some brokers automatically convert foreign currencies on your behalf, maintaining your account in a single currency. By setting the Convert cash to a single currency option, you instruct Capitally to automatically convert all currencies to your chosen base currency.
You can configure this setting for specific accounts (such as brokers that perform automatic conversion) or even for specific currencies by adjusting this option in the Currency position's settings.
Using a separate account for cash
By setting the Use a single account for cash option, you can designate a specific account to handle all cash transfers.
You can configure this setting for specific accounts (for example, when you pay for trades directly from a checking account) or for specific currencies by adjusting this option in the Currency position's settings.
Understanding Minor Discrepancies in Your Cash Balance
You may occasionally notice a small difference between the cash balance displayed in Capitally and the actual balance in your brokerage account. This is a common occurrence and is easy to correct.
Why It Happens
Brokerage platforms often execute numerous small cash transactions, particularly during currency conversions. Each platform uses slightly different methods for rounding and tracking these balances. Over time, these tiny rounding differences can accumulate, potentially causing a discrepancy of a few cents up to a few dollars. This can also sometimes result in a small negative cash balance appearing in Capitally.
How to Reconcile Your Balance
You can easily correct this by adding an Account Balance transaction in Capitally. Simply enter the accurate cash balance from your brokerage statement, and the discrepancy will be resolved.
Important Note
Making these adjustments is standard practice for accurate record-keeping. Since these are related to your cash balance and not investment gains or losses, they do not have any tax implications.
Importing Cash Transactions from a Bank
Currently, Capitally is not optimized to track thousands of cash expenses and transfers, so importing your full account statement might not be the most efficient method. Instead, we recommend tracking the current balance on all your cash accounts. You can do this manually or import the balance in bulk for convenience.
How to Select the Right Asset
To ensure optimal results, simply search for the currency you wish to track and create transactions on all accounts where you have that currency.
For instance, if you have multiple dollar accounts in different institutions, you can add an Account Balance transaction on each of them. Once you've created an initial transaction on an account, it will appear in the Positions view. Here, you can update the balance by double-clicking it.
In the rare case where you have two sub-accounts in the same currency (e.g., if your bank account has multiple sub-accounts), you can create multiple custom assets of type Cash to track each sub-account individually.
Exploring Your Cash Accounts
The Portfolio section allows you to visualize your cash allocation and assess the impact of foreign currency on your portfolio value by switching the viewing currency or using it as a benchmark.
To see all your cash positions, navigate to Portfolio -> Types -> Cash. From here, you can delve deeper into specific Accounts or Currencies. Or you can use the Cash balances bookmark available under the Portfolio menu.
There's also a dedicated Breakdown chart in Returns section that will visualize the impact of currencies, fees, taxes and investment income on your returns.