Unlike manual accounts or connected accounts, system accounts are created for you as needed, and cannot be renamed or have their starting balances edited. Learn more about Ambrook’s specific system accounts below:

Ambrook Wallet’s balance is automatically managed for you by Ambrook, accounting for deposits, withdrawals, scheduled payments, check deposits, card transactions, and more.

Accounts Receivable represents how much money you are owed by your customers for open invoices. Its balance is equal to the sum of the all unpaid portions of open invoices. Draft or canceled invoices do not count towards Accounts Receivable.

Undeposited Checks represents the value of checks you’ve received from customers but not yet deposited. Recording inbound checks as invoice payments on Ambrook increases Outstanding Checks, and clearing those checks to posted deposits decreases it.

Expected Invoice Payments represents the sum of all invoices that you marked as paid but did not record or match a payment for. Marked-paid invoices no longer count towards Accounts Receivable, and will count towards Expected Invoice Payments until they are matched to payments.

Accounts Payable represents how much money you owe vendors for open bills. Its balance is equal to the sum of the all unpaid portions of open bills. Draft or canceled bills do not count towards Accounts Payable.

Outstanding Checks represents the value of checks you’ve written and given to vendors that they have not yet deposited. Recording or printing checks as bill payments on Ambrook increases Outstanding Checks, and clearing those checks to posted transactions decreases it. Mailed checks are processed by Ambrook, and do not count towards Outstanding Checks.

Expected Bill Payments represents the sum of all bills that you marked as paid but did not record or match a payment for. Marked-paid bills no longer count towards Accounts Payable, and will count towards Expected Bill Payments until they are matched to payments.

Unearned revenue is an account we use on the balance sheet on an accrual basis to represent prepayments to invoices that haven't been served yet. If you have a payment on Feb 1 matched to an invoice on March 1, for the month of February that income is "unearned" on an accrual basis balance sheet."

Ambrook creates several system accounts to ensure that your balance sheet stays balanced while you make progress towards completing your bookkeeping. When tagging a transaction, bill, or invoice with a transfer or capital expenditure category, Ambrook recommends that you select a balance sheet account where the value is being transferred on your balance sheet. If you choose to skip this step, these transactions will be automatically transferred to a collection of clearing accounts on your balance sheet. If you notice any of these accounts on your balance sheet, you can drill down and view the transactions, bills, or invoices that need to be completed.

There are three categories representing incomplete transfers:

And five accounts representing incomplete capital expenditures:

Net Income is an Equity account that is calculated as the sum of all of your year-to-date incomes minus the sum of all of your year-to-date expenses. At the end of a calendar year, Ambrook automatically transfers your net income into retained earnings.

Retained Earnings represents net income from previous calendar years that has been retained by your business. Its value is equal to the sum of previous years’ net income, plus any adjustments made to Retained Earnings in recorded Journal Entries.

Opening Balance Equity counterbalances the opening balances of any asset, liability, or equity accounts you create on your balance sheet. For example, if you migrate your books to Ambrook with a $1000 opening balance on your bank account asset, and $600 opening balance on a credit card liability, your opening balance equity will equal $400.

Remaining Amount is an equity account that represents any discrepancy in your balance sheet’s fundamental accounting equation: Assets = Liabilities + Equity. The presence of a remaining amount suggests that you may have an incomplete entry or incorrectly recorded transaction. If you notice a remaining amount on your account and want help tracking down its source, contact support for help.

Any recorded inflow (deposit) transactions that are not assigned a category will count towards Uncategorized Income. Finish tagging your transactions to zero-out this account on your P&L.

Any recorded inflow (deposit) transactions that are not assigned a category will count towards Uncategorized Expense. Finish tagging your transactions to zero-out this account on your P&L.