How is the total balance calculated in Finplan?
Understand how the total balance is calculated in Finplan, including balances from domestic and international accounts.
If you want to check whether your balance is correct in Finplan, it’s important to understand how the total balance is calculated in Finplan.
To do that, you need to understand both the formation of individual balances and the sum of all total balances.
What is the current balance?
The current balance is the evidence of how much you have available in a given account.
Calculation of an account’s balance
To form the balance of an account configured in a national currency, the basic formula considered is:
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Opening balance of the account
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+ Income
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– Expenses
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+ Transfers into the current account
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– Transfers from this account to another
Since there’s no exchange rate variation, the balance changes purely from funds entering or leaving.
Calculation of an international account’s balance
International accounts have the characteristic of recording transactions in a currency different from your local currency.
To view the balance in the local currency, the same logic as above is applied, but multiplied by the latest exchange rate.
Calculation of the sum of balances
In the case of summing balances from different accounts, to result in your current personal financial position, the calculation is simple:
- + National Account Balance 1
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+ National Account Balance 2
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+ International Account Balance 1 x Exchange Rate to Local Currency
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+ International Account Balance 2 x Exchange Rate to Local Currency
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And so on
The total sum takes into account all registered accounts.
If you have any questions, Finplan’s support team is available to help you.