In order for your balance sheet to run for budgets & forecasts, you must first enter your opening balances within the asset and liability register.

Each farm with a planning tab will have access to the register, and it can be viewed as budget, forecasts, or actuals + forecasts. You can choose to edit existing assets and liabilities, or add new ones.

Each financial year, you will enter the opening balance of each asset and liability. You can enter it as per Xero's own balance sheet, or enter other values depending on how you wish your budgeted balance sheet to present itself.

Adding assets to your balance sheet

Before you are able to add in assets, you must first configure the gain / loss on sale account.

You would in most cases have an account in your chart of accounts for this sole purpose.

Each asset will need the following information in order to be added to your register:

Details

  • Name - this can be as descriptive as you wish
  • Type - rural property, residential property, development property, machinery & equipment, shares, or other are available as options
  • Total area - only available for rural property. This is the total area of your property
  • Effective hectares - only available for rural property. This is the total usable area of your property i.e. less size of house, trees on property, etc
  • Symbol - only available for shares
  • Quantity - only available for shares. Number of shares held

Value

  • Value - opening value as of the first month of your financial year
  • Account - an account where the value of the asset will be tracked

Purchase & Sale Dates

  • Purchased during the season - check this if the asset was purchased during this season / financial year
  • Sold during the season - check this if the asset was sold during this season / financial year

If an asset is sold or purchased during the financial year, then this information will flow through to your planning tab & reports.


Adding liabilities to your balance sheet

Each liability will need the following information in order to be added to your register:

Details

  • Name - this can be as descriptive as you wish
  • Type - bank loan, family debt, hire purchase, or other are available as options
  • Repayments - this is the type of repayments that will be made over the next financial year towards this liability. These will be automatically calculated

Accounts

  • Interest repayments - the account that will be used for interest repayments
  • Principal repayments - the account that will be used for making repayments against the principal (total value) of the liability

Repayment information

  • Start date - this can occur before the first month of your financial year
  • Opening balance - opening balance as of the first month of your financial year
  • Interest rate - the intended interest rate for the next year

Underneath all of this information is a table calculating repayments made - interest and principal (if applicable). This will in turn flow through to your planning tab and reports for budgets or forecasts.

NOTE: Accounts payable and accounts receivable values are automatically calculated based on the various budgeted or forecasted movements made throughout the year against other accounts. 

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