Several components in Brixx can be set to have an opening value. This is the value they have at the start of the business plan, which can be different from the price they were originally purchased.
For example, if the business bought a van for £10,000 a few years ago, it may only be worth £7,000 at the start date of the Brixx plan. If this is the case, we would record the van's opening value as £7,000. The £3000 of accumulated depreciation is assumed to have taken place since its purchase - we do not record this detail in Brixx because it is not particularly useful for forward planning.
Opening values from components feed into the Opening Balance, adding to the business' opening assets, liabilities and equity. Some parts of the Opening Balance can only be filled by using components with an opening value.
Below is a guide to each of the opening components, divided by how they fall into the Opening Balance.
Assets are things the business owns which have value. Some assets (Starting Cash and Cash Owed to You) are entered directly into the Opening Balance, under Settings. The rest are represented in Brixx by the following components:
For existing tangible (physical) assets, use the Asset component in Brixx to model the current value and any future depreciation or sale of this asset. An existing asset's opening value will automatically appear in the opening balance.
For more information about the Asset component, read our full guide here.
For existing inventory, use the Inventory components in Brixx to model the current value and any future sale, repurchase or write-off of this inventory. Existing inventory value will automatically appear in the opening balance.
For more information about the Inventory component, read our full guide here.
For existing Investments, use the Investment component in Brixx to model the current value and any future growth or sale of this investment. An existing investment's opening value will automatically appear in the opening balance.
For more information about the Investment component, read our full guide here.
Liabilities are costs which the business is responsible for paying. Some of these can be entered directly into the opening balance tool, while others are added as components. The opening balance tool can be found under Settings/Opening Balance.
If you have outstanding loans, these count as liabilities in the opening balance. These existing loans are added using the Loan component, which also models the future capital repayments and interest payments of the loan.
For more information about the Loan component, read our full guide here.
Equity is a measure of the money that has been invested in the business.
Equity is entered in the Equity component and can represent either existing equity or shares sold during the course of the plan. Existing equity will automatically appear in the opening balance.
For more information about the Equity Component, read our full guide here.