How to add accounts to Balance Sheet in Magnifi

Sub Accounts

What is a Sub Account?

A Sub Account is used to project the balance sheet accounts. For example, if you would like to add a projection against "Plant & Equipment" called "Tools", you click on the green icon that appears next to the balance sheet account and enter the details shown below.









The "Balance Sheet Account" represents the other side of the transaction. In the example above, this represents "Cash at Bank" meaning that the Tools will be paid from "Cash at Bank".

You can also click on the button "Add Sub-account" which will display a similar input box to above, except it will also ask you to specify the account you would like to add the sub-account against. 



Notes
Any sub-account linked to a cash account will appear in the Cashflow Forecast. You can also update the value in the Cashflow Forecast, however all sub-accounts must be added in the balance sheet.

Where does the Sub Account appear in the Balance Sheet?

When the Sub Account is added, it will appear in green against the relevant accounts including GST (if applicable) as shown below;



There would also be $100 showing against the GST account. 

Idea
To simply show all sub accounts, click on the option in the top right corner "show sub-accounts only". This will make it easier to review/update the projections. 

How do you specify whether GST is applicable?

The GST is specified at the account level. In the example above, GST has been ticked against "Plant & Equipment" in the Chart of Accounts and therefore all sub accounts entered against "Plant & Equipment" will be subject to GST.


What are some examples of Sub Accounts?

Various sub account a user may add include:
  1. Income Tax: Add a sub account against the income tax payable account to record income tax payments. You can also accrue the income tax monthly to recognise a provision by linking the profit and loss account to income tax payable.


  1. Loan Repayments: Add a sub account against the loan account to record the loan repayments. You can also recognise interest against the loan by linking the profit and loss account (eg Interest Expense) to the loan account
  2. New Asset: Add a sub account against the fixed asset account and the balance sheet linking account will determine how it's funded. For example, any the cash account if funded by cash or a loan account if funded by loan.
  3. Prepayments: Add a sub account against the prepayment account and then enter the prepayments. Then link the relevant profit and loss account to the prepayment account under Chart of Accounts. For example: