Why this matters
Setting up debt accounts allows you to track loans, mortgages, credit cards, and other debt facilities. This process enables proper debt management, interest tracking, payment scheduling, and compliance reporting for your financial obligations.
Prerequisites
- You must be logged in as an Owner or Administrator
- Have an entity created in the system
- Gather debt account details (account numbers, interest rates, terms)
- Understand the different types of debt accounts available
Steps
1. Navigate to Accounts
Go to Accounts → Select your entity from the tabs
2. Add New Account
Click the Add Account button in the top-right corner of the accounts section.
3. Choose Manual Entry
For debt accounts, select Manual Entry as debt accounts typically cannot be connected via direct bank feeds.
4. Select Debt Account Type
Choose the appropriate debt account type:
Credit Card (CRED)
- For credit card accounts
- Typically has revolving credit facility
- May have different interest rates for purchases vs cash advances
- Usually requires minimum monthly payments
Loan Account (LOAN)
- For personal loans, business loans, car loans
- Fixed or variable interest rates
- Regular repayment schedule
- Principal and interest components
Mortgage (MORT)
- For home loans and property mortgages
- Long-term debt with property as security
- May have offset accounts or redraw facilities
- Interest may be tax-deductible for investment properties
5. Enter Basic Account Information
Fill in the essential account details:
Account Holder
- Enter the name on the account
- Usually the entity name or individual name
- Must match the legal name on the account
Account Numbers
- BSB Number - 6-digit bank code (if applicable)
- Account Number - The debt account number
- Some debt accounts may not have traditional BSB/account numbers
Account Identification
- Nickname - Friendly name (e.g., "Home Loan", "Business Credit Card")
- Group - Group name for organizing accounts (e.g., "Debt", "Loans")
6. Set Starting Balance
Configure the current debt balance:
- Check Set Starting Balance
- Enter the current outstanding balance (as a positive number)
- Set the balance date (when this balance was current)
- Add a description (e.g., "Opening Balance", "Current Balance")
7. Configure Account Properties
Set up debt-specific properties:
Interest Rate Settings
- Interest Rate - Current interest rate (annual percentage)
- Interest Calculation - How interest is calculated (daily, monthly, annually)
- Rate Type - Fixed or variable rate
Payment Settings
- Payment Frequency - Weekly, fortnightly, monthly, quarterly
- Payment Amount - Regular payment amount
- Payment Date - When payments are due
Account Limits
- Credit Limit - Maximum credit available (for credit cards)
- Available Credit - Current available credit
- Minimum Payment - Minimum required payment
8. Set Up Joint Holders (if applicable)
Configure account access and ownership:
- Click Joint Holders if multiple entities have access
- Add each entity that has access to the account
- Set access levels (View, Edit, Full Access)
- Configure allocation percentages (must total 100%)
9. Configure Interest Rate Triggers
Set up automatic interest rate updates:
- Rate Change Notifications - Get notified of rate changes
- Automatic Updates - Update rates automatically if available
- Rate History - Track rate changes over time
10. Set Account Status
Configure the account status:
- Active - Account is currently in use
- Dormant - Account is not actively used but still open
- Closed - Account has been closed
11. Review and Save
Before finalizing:
- Review all entered information
- Verify account numbers and balances are correct
- Check that interest rates and payment terms are accurate
- Click Save Account to create the debt account
Expected Results
- New debt account appears in your Accounts dashboard
- Account is properly categorized as a debt account
- Interest rate and payment settings are configured
- Account is ready for transaction management and reporting
- Joint holders are set up with appropriate access levels
Example
Setting up a Business Credit Card:
- Account Type: Credit Card
- Account Holder: Smith Family Trust
- Account Number: 1234 5678 9012 3456
- Nickname: Business Credit Card
- Group: Debt
- Starting Balance: $5,000.00
- Interest Rate: 19.95%
- Credit Limit: $25,000.00
- Payment Frequency: Monthly
- Minimum Payment: $150.00
Troubleshooting
- Can't find debt account type → Ensure you're using Manual Entry, not Direct Bank Connection
- Interest rate not saving → Check that the rate is entered as a percentage (e.g., 5.5 for 5.5%)
- Joint holders not working → Ensure all entities exist and have proper access permissions
- Account not appearing → Refresh the page and check the correct entity tab
- Balance showing incorrectly → Verify the starting balance is entered as a positive number
What Can Go Wrong
- Wrong account type → May affect interest calculations and reporting
- Incorrect interest rate → Could lead to wrong interest expense calculations
- Missing payment terms → May affect cash flow planning and reporting
- Wrong starting balance → Could cause reconciliation issues
- Incomplete setup → Account may not function properly for debt management
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