Define the system level accounts for Jirav in order to forecast the three way financials (Balance Sheet, Income Statement, and Cashflow)
The screen shot above provides a completed Plans setup for each of the system account that are required to be set in order for Jirav to correctly forecast the company's financials. Below is a link to each of the sections which outlines the purpose, source, and extent of each of the system lines.
- Salary Expense
- Accrued Revenue Account
- Accounts Receivable (A/R)
- A/R Delay
- Deferred Revenue
- Accounts Payable (A/P)
- A/P Delay
- A/P Accrual Accounts
These accounts need to be defined in Jirav due to the system being a financial model whereby the forecasted cash balance is the result of the assumptions used to build the forecast. In order for the financial statements to balance the system requires that the accounts are defined that are variable, or the result, of the financial forecast.
Account to forecast monthly base comp of staff. Amount is one twelfth of the annual comp total of active employees in the period.
For accounts that user more than one salary expense account you can use the plan drivers to allocate from one account to another.
System account to apply the change in cash to balance the balance sheet; cash is the result of the forecast assumptions.
Accrued Revenue Account
In most cases left blank, account selected for times a company has outstanding receivables for unbilled amounts
Accounts Receivable (A/R) and A/R Delay
System account to accrue and collect the forecasted revenue based on delay. If no revenue with no A/R account can be left blank desired delay to collect the A/R balance in the forecast period
Products paid annually and revenue is recognized over a contract term, this results in cash being correct as the revenue is recognized
Accounts Payable (A/P) and A/P Delay
System account to accrue and relieve the period expense total(s) from the defined AP accrual accounts identified in "Accrual Accounts" and desired delay to relieve the AP balance in the forecast period
A/P Accrual Accounts
Select period expense accounts to auto accrue to the balance sheet AP account and relieve at the desired delay.