Overview
When you activate MarginEdge Funding, you'll need to connect your funding transactions to your accounting system. This ensures that payments and fees are properly tracked in your books, just like any other business expense.
Article Contents
Why This Matters
Proper mapping ensures:
- Accurate financial statements – Your balance sheet correctly shows outstanding balances
- Clean expense tracking – Funding costs are separated from operating expenses
- Easy reconciliation – Your accountant can quickly review funding activity
- Tax reporting – Consult your accountant about proper categorization for tax purposes
What You'll Need to Map
During Funding setup, you'll assign four key items to corresponding accounts in your accounting system. If you're usure, we recommend you consult your accountant before beginning.
1. Payment Account
What it is: The liability account that tracks your outstanding balance.
MarginEdge Category: Liability
Your Action: Select the liability account in your accounting system where you want to record the outstanding balance.
Example: MarginEdge: Liability → Your System: "Account"
2. Funding Fee Category
What it is: The expense account that tracks fees charged on your funded invoices.
MarginEdge Category: Expenses
Your Action: Select the expense account in your accounting system where you want to record funding fees. Consult your accountant or bookkeeper if you are unsure which account to use.
Example: MarginEdge: Expenses → Your System: "Interest Expense" or "Financing Fees"
3. Payment Vendor
What it is: The vendor entity that will appear on your payment transactions.
MarginEdge Vendor: [me] Funding
Your Action: Select or create the vendor in your accounting system that represents MarginEdge. This ensures all payment transactions are properly attributed.
Example: MarginEdge: [me] Funding → Your System: "MarginEdge Funding" (create if it doesn't exist)
4. Balance Sheet Account
What it is: The accounting system account that represents the balance sheet that payments should map to.
MarginEdge Balance Sheet Account: [me] Funding
Your Action: Select or create the account in your accounting system that represents MarginEdge Funding. This ensures all payment transactions are properly attributed.
Example: MarginEdge: [me] Funding → Your System: "MarginEdge Funding" (create if it doesn't exist)
What Happens Next
Once you've mapped these categories:
- Weekly payments will automatically post to your selected accounts
- Your accounting system will stay in sync with your outstanding balance
- You can track funding costs separately from regular vendor expenses
- Your accountant will have a clear audit trail of all MarginEdge funding activity
For questions about the program - Contact help@marginedge.com
For questions about your accounts - Consult with your accountant about the best account structure for your business.