Use journals & schedules to forecast Balance Sheet amounts
Journals allow you to create one off or recurring Balance Sheet movements of the same amount. Schedules allow you to create Balance Sheet movements of differing amounts.
For example, a journal may be used to forecast a one time an owner’s or director’s draw, a dividend payment, the sale of a fixed asset, or the purchase of inventory. A schedule is often used to forecast amortisation, a loan repayment, or depreciation, as the loan interest or depreciation or amortisation amounts change over time.
Each journal or schedule line has at least two accounts associated with it, creating movements in both accounts. The movements amounts are calculated according to the journal entry amount or according to Balance Sheet account value for a schedule.
A journal or schedule may touch any Balance Sheet account; however, in the P&L a journal or schedule may only impact Balance Sheet Derived P&L Accounts (e.g. Loan interest accounts, depreciation expense accounts, etc.).
Multiple schedule lines can be added to an account (e.g. a loan may have a schedule line for collection of repayments and a schedule line for posting interest expenses to an account in the P&L).
💡Pro Tip: If you’re wanting to forecast AR, AP, Unearned/Deferred Revenue, and/or Prepaid Expenses, then this can be done through timing profiles. To forecast tax, you'll need to go to the 'Tax' tab in the 'Forecast Settings'. You can learn more about forecasting tax in the following articles: Withholdings Tax, Consumption/Sales Tax, and Tax Expense accounts.
Creating a journal
To set up a journal,
❗Note: Fathom will not allow you to proceed with a journal entry unless the entry is in balance. A red ‘not in balance’ indicator will appear to prompt you to add additional line entries or accounts to the journal or make changes to the current entries.
Schedules in Fathom Forecasting
To create a schedule,
❗Note: The ‘Loan Repayment/Interest Calculation’ option for a schedule will only be available if you’ve selected a Balance Sheet account classified as Short Term Debt or Long Term Debt and a P&L account classified as a Loan Interest account. You can reclassify accounts in ‘Step 3 - Chart of Accounts’ in the Settings for the entity.
Continue the 'Forecast Creation & Setup Workflow' by choosing from one of the next steps below:
What you want to do:
Where to go next:
Track the performance of key metrics throughout your forecast
Plan for potential business events & actions
Additional knowledge & common questions: