What this article covers: How BrizoConsol organises accounts using Sections and Classes — a reference for every Section, its Class, and what it represents. Correct Section and Class mapping is essential for accurate reports, KPI calculations, and liquidity ratios.
BrizoConsol organises every account in your chart of accounts into two levels:
Level
What it does
Class
The broad financial statement type — Asset, Liability, Equity, Revenue, or Expense. Determines which statement the account appears in.
Section
The functional grouping within a Class — for example, Bank, Fixed Asset, and Accounts Receivable are all Sections within the Asset Class. Sections drive KPI calculations, report layouts, and liquidity ratio components.
⚠️ Mapping matters: KPIs such as Current Ratio, Quick Ratio, and Accounts Receivable Days rely on accounts being mapped to the correct Section. Accounts mapped to the wrong Section will produce incorrect ratios — review mappings when connecting a new entity or if KPI results appear unexpected.
Asset Sections
Section
Description
Bank
Cash and bank balances — checking accounts, savings accounts, and petty cash. Used in Cash Ratio and Cash Conversion Cycle calculations.
Accounts Receivable
Amounts owed by customers for goods or services sold on credit. Used in Receivables Turnover and Accounts Receivable Days calculations.
Inventory
Value of goods available for sale — raw materials, work-in-progress, and finished goods. Used in Inventory Turnover and Days Sales in Inventory calculations. Excluded from the Quick Ratio.
Current Asset
Assets expected to be converted to cash or consumed within one year — short-term investments, prepayments, and other liquid assets. Used in Current Ratio and Quick Ratio calculations.
Fixed Asset
Long-term tangible assets used in operations — machinery, equipment, vehicles, and buildings. Used in Fixed Asset Turnover calculations.
Non-Current Asset
Assets not expected to be converted to cash within one year — long-term investments, intangible assets, and goodwill.
Liability Sections
Section
Description
Current Liability
Obligations due within one year — short-term loans, accrued expenses, and deferred income. Used as the denominator in Current Ratio, Quick Ratio, Cash Ratio, and Operating Cash Flow Ratio.
Accounts Payable
Amounts owed to suppliers for goods and services purchased on credit. Used in Payables Turnover and Accounts Payable Days calculations.
Taxes Payable
Taxes owed to government authorities that have not yet been paid.
Payroll Payable
Salaries, wages, and other employee entitlements that have been earned but not yet paid.
Non-Current Liability
Obligations due beyond one year — long-term debt, lease liabilities, and deferred tax. Used in leverage KPI calculations (Debt to Equity, Debt Ratio).
Equity Section
Section
Description
Equity
Owners' interest in the business — share capital, retained earnings, and reserves. Used in Return on Equity, Debt to Equity, Equity Ratio, and Gearing Ratio calculations.
Revenue Sections
Section
Description
Revenue
Income from core business operations — sales of products or services. Used as the numerator in most profitability margin KPIs and turnover ratios.
Direct Costs
Costs directly associated with producing goods or delivering services — also referred to as Cost of Goods Sold (COGS). Used in Gross Profit and Inventory Turnover calculations.
Other Income
Non-operational income — gains from asset sales, one-off transactions, and other items outside the core business.
Interest Income
Income earned from cash balances, investments, or loans made to other parties.
Expense Sections
Section
Description
Expense
General operating expenses not classified under a specific category — overheads, administration, and selling costs.
Depreciation
Systematic allocation of the cost of tangible fixed assets over their useful life. Separated from Expense to allow EBITDA to be calculated correctly — EBITDA adds back Depreciation and Amortisation.
Taxes Expense
Income taxes recognised in the financial statements for the period. Separated to allow EBIT and EBITDA to be calculated correctly.
Interest Expense
Costs incurred on borrowed funds — loan interest, bond coupon payments. Separated to allow EBIT and EBITDA calculations and Interest Coverage Ratio.
Other Expense
Non-operational or irregular expenses that do not fit the main expense categories — impairments, write-offs, and one-off costs.