Here’s how to do automatic bookkeeping when investing in loans

As a company, questions always arise about how accounting should be handled in new forms of investment. If you invest in loans through Astro Finance and you do this as a company, you must also post the events that occur.

One way to do this is to look at bank statements and then post different types of transactions, but at Astro Finance you can export so-called SIE files that you easily import into your accounting program. All you have to do is enter your accounting accounts with Astro Finance and link transaction types to accounting accounts.

This guide shows how this works:

After logging in, click on posting in the menu to open the window below.

The types of transactions we will handle are as follows:

  1. Amortization
  2. loans
  3. Interest
  4. Fees to the Crown Magistrate
  5. Loan
  6. Deposit
  7. Socket

Amortization, Lending and Credit Losses

Every loan that you participate in should be posted to a balance account in your general ledger and a tip is to use account 1696 and call it “Astro Finance Lender”. When repayment of loans takes place, repayments, the receivable, which is 1696, must be reduced, which is why 1696 is involved in both repayments and lending.

Your account with money at Astro Finance should also be included in the general ledger such as 1936 and call it “Account [Number you have in the account] Credit Exchange”.

This means that you should configure the link for Amortization and Lending according to the following example:

In the event of any loan losses, you must reduce your outstanding receivables of 1696 in the example above and enter this as a loss in, for example, account 6350 and call it “Credit Losses Credit Exchange”. If the 6350 is busy, you can put it on, for example, 6351, 6352 etc. if you want to keep these credit losses apart from other ones.

So if you use 6350, you should add that Debit should be 6350 and Credit 1696.

Interest

When paying interest, this should be booked as an income and you can choose to either add this as your own account to keep track of the interest from the Credit Exchange, such as 8316, which is often a vacant account. Alternatively at 8310 if you do not want to report your income separately. If you use 8316, the setting will be Debit 1936 and Credit 8316.

Deposits and Withdrawals

Deposits and Withdrawals

The accounting for your deposits and withdrawals is determined by which account you withdraw the money from in terms of deposits and which account you withdraw the money for in your withdrawals. The simplest thing is that you decide to only withdraw and deposit money from your main corporate account which may then have the number 1930. For deposits you then set up Debit 1936 and Credit 1930. This means that the SIE file will contain the accounts for account 1930 and you do not need to post these separately when you dot your company account. Because of this, it is therefore a tip that you start by importing the SIE file from the Credit Exchange to your accounting system before you start the reconciliation for the past month.

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