Once you connect your accounting software to Calqulate, your Chart of Accounts (CoA) will be imported.
Mapping your chart of accounts is the single most important step in setting up an automated finance stack. Your business generates revenue and expenses during its daily activities. A properly mapped chart of accounts allows this data to flow automatically to the correct place in your Profit and Loss and for staff costs and expenses to land in the right departmental cost centre.
After connecting your accounting software, go to the left-hand menu and click FINANCIAL REPORTING > Chart of Accounts.
Calqulate automatically maps some of the default accounts from your accounting software to your Profit and Loss.
In the top right of the page, you can see the total number of accounts which need to be mapped and an overview of your progress.
Click on the header of the Status column to bring all unmapped accounts to the top of the list.
To map an account, click on the pencil icon on the right side of your screen.
Select the Type, which should be either Expense or Income for your profit and loss.
Assets, Equity and Liability belong to your balance sheet and should not be used for this exercise.
Next, select a Sub-type.
Then select an Expenditure Group. One of the major advantages of Calqulate is the ability to create custom expense groups outside of the standard Profit and Loss. Here you can create a departmental breakdown of expenses and add custom groups for your particular set-up.
The next field Payment delay allows you to set a custom payment delay for that account. For example, most EU tax payments don't have to be paid for a period of 15 days after the salary was transferred. If you want to learn more about the payment delay, check our article about it.
After this, select whether the account is Cash in or Cash out and choose the row for it to appear in your Cash Management.
Lastly, please select whether or not this expense should go towards your CAC. Typically all salaries and expenses from your Sales and Marketing departments should contribute towards your CAC.
Confirm with Save.
That's it, you have now mapped your first account. With this step, you have just eliminated the majority of the manual work associated with creating departmental cost analysis. At the same time, you have just greatly improved the measurement of your Customer Acquisition costs.
If you want to know how to manage Types, Sub-types and Expenditure Groups, check our article about the Mapping Parameters.
Both of these together will allow you to create more accurate cash flow forecasts and give you a true picture of the costs of a customer.
After you have mapped your Chart of Accounts, Calqulate can create metrics and high-value financial data which you can find in several places:
- Cashflow forecasting
- Expense Management Dashboard
- Profit and Loss Dashboard
- Unit Economics Dashboard
- Balance sheet (coming soon)
Updated about 1 month ago