Structure of Categories

The first 3 categories at Level 1 are reserved for money received. The first 2 of the 3 categories - Sales Revenues and Other Revenues - are considered by Board as OPERATING revenues, while the New Funding category is treated as NON-operating (other) cash flow.

    • Sales Revenue - is a category for money received from your product or service sales activities
    • Other Revenue - is a category for money received from your other operating activities, typically refunds or interest and capital gains
    • New Funding - is a category for money received from investors or lenders. These are later not considered to be part of your operating revenues, but overall cash flow.

The next 7 categories at Level 1 are reserved for the money you pay. The first 5 of the 7 categories are considered by Board as OPERATING costs. The remaining 2 categories - Loans Repayment and Assets Purchase - are treated as NON-operating (other) cash flow.

    • Space & Equipment - is a category for money paid for space or equipment rental, including utilities, repairs and maintenance
    • Payroll & Travel - is a category for money paid to your employees and costs associated with them, as well as money paid to contractors
    • Inventory Purchase - is a category for money paid to purchase material, spare parts, and any other goods to be stocked in your inventory
    • Operational Services - is a category for money paid to vendors for their services directly associated with your production or service delivery to your customers
    • Other Bills & Charges - these are all other operating costs - money paid to accountants, consultants, telcos, banks, tax authorities, or for office SW subscriptions.
    • Loans Repayment - is a category for repayment of loans or bonds/notes. This category is not considered as an operating cost, but overall cash flow.
    • Assets Purchase - is a category you should use when purchasing assets such as machinery, real estate, licences - typically one time investments. This category is also not considered as an operating cost, but overall cash flow.

Note: There is one special type of record and planned payment called Transfers. Use Transfers when you are moving money between your bank accounts or cash registers. Transfers are not part of your operating revenues and costs, but are included in the overall cash flow.

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