What is a client money account?

A client money account holds funds that belong to customers, not to you. Safeguarding and client-money rules say you must keep that pot separate from operating cash and be able to show who owns it. The account is at a bank. The split is in your ledger.

How does a client money account work?

Inbound customer funds land in a safeguarding or client-money bank account. You credit wallets. You do not pay company bills from that account. Fees you have earned move to an operating account with an explicit post. The daily proof is wallets plus unresolved items equals the bank.

Client money vs operating cash

Operating cash is yours. Client money is not. Mixing them is the usual failure. A single omnibus that also pays payroll will not survive an audit. Two bank accounts, two internal balances, one rule: customer credits never land on @Operating.

What do you show an auditor?

The bank statement, the sum of wallets, the open clearing items, and the posts that moved earned fees out. If any of those is a spreadsheet you type by hand, you do not have a book.

How it works with Blnk

Keep client money on @ClientMoneyUSD and operating cash on @OperatingUSD. Wallets sit under the client-money pot. When a fee is earned, post from the wallet or the pot to @Revenue, then sweep the bank when you actually move cash.

See internal balances and reconciliation.