Budgeting yearly payments monthly

Leunis

We are trying to budget a monthly amount for payments that are due yearly. We are transferring the monthly amount into an ‘escrow’ account, then when we pay the yearly bill we transfer the amount from the ‘escrow’ account to our checking account. We're having trouble with reconciling the categories under the budgeted amount and then the actual payment.

Is anyone budgeting a monthly amount for yearly payments and how are you categorizing the transfers from account to account and the payment?
Is there a better way to budget monthly for yearly payments?

Thanks in advance

UKR

I'm doing something similar in my Quicken for Windows budget. For property taxes due twice a year, every month I transfer money to my savings account. When the tax due date comes near, I transfer money back from the savings account to my checking account.

To see the money going out and coming back, in my budget views I have added the savings account as if it was two budget categories. Under the sections "Transfers in" and "Transfers out" both I have marked the savings account. Together with the reminder for paying my taxes, I can now see the budget impact.

Transfers cannot and do not need to be categorized as something other than transfers.
The actual tax payment reminder is categorized "Tax:Property Tax"