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Cashflow 2.0 - Income

Learn how to manage Income in Cashflow 2.0

Maria Iglesias - Content Lead avatar
Written by Maria Iglesias - Content Lead
Updated over a month ago

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Overview

The Income function enables you to manually add income entries and utilize the information added in the Fact Find > Income section. This integration ensures that existing data flows into the Cashflow module, creating a solid foundation for income calculations. As a result, you can easily build upon the client's current financial situation and have the flexibility to model new or future income sources.

 

In Cashflow 2.0, the Income tab is designed to incorporate recommended income entries directly into a client’s financial scenario. This allows for precise modelling of various income streams for the client, their partner, or associated entities, such as trusts and companies, ensuring a comprehensive financial plan. It facilitates the creation of detailed, accurate, and tailored financial plans that align with the client’s specific circumstances.

 

Access

Income in Cashflow 2.0 can be found within the Cash Accounts, to access the Cashflow 2.0 Cash Accounts tab, open a client record, hover over the Cashflow tab, and select Cashflow 2.0 from the drop-down menu.

Open an existing Scenario or create a new one by selecting the blue Plus+ button, entering a Scenario Name, and ticking the available setup options.

The Cashflow 2.0 landing page will open directly on the Cash Accounts tab in the Overall Position if the client is partnered, or on the Client if they are unpartnered. The Income will show within the Cash Accounts Tab under Taxable Income.

Adding Income in Cashflow

Income can be added by selecting the Plus+ button from the bottom right corner of the Cash Accounts tab.

📌Note

For entities like trusts or companies, the Plus+ button in their respective cash account sheets will also provide access to the Income form.

You can also add income from the drop-down options within the Add button at the top right of the window, regardless of the tab you are working on.

Selecting either of these options will open the Add Income window.

Income Window Fields

Amount

Enter the recommended income value in this field.

Future Value Toggle

  • When enabled, Cashflow will use the value as entered without applying further calculations.

  • If disabled, the system will apply auto-calculations based on indexation rules.

Taxable Toggle

  • Enable this toggle if the income should be included in taxation calculations.

  • Disable it for non-taxable income entries.

Owner

Use the dropdown to assign the income to a specific owner, such as the client, partner, joint ownership, or any associated entities (e.g., trusts or companies).

Income Type

Select the appropriate income type:

  • Employment

  • Self-Employed

  • Other

  • Franked Dividend

Start From

Specify when the income entry should begin using the following options:

  • Client Age or Partner Age

  • Client Retirement Age or Partner Retirement Age

  • Specific Year or Date

Till

Specify the end period for the income entry with options such as:

  • Client Age or Partner Age

  • Client Retirement Age or Partner Retirement Age

  • Specific Year or Date

  • No End Date: For income that continues throughout the scenario.

  • One-off: For income that occurs only once in the scenario.

Growth Rate Type

By default, income entries are indexed to AWOTE (Average Weekly Ordinary Time Earnings).

You can change this to:

  • CPI (Consumer Price Index)

  • Other

Super Contributions and SGC Legislated Rates

For Employment income types:

  • If the SGC Legislated Rates checkbox is selected, the system will automatically apply the legislated superannuation contribution rates.

  • Alternatively, you can manually enter a specific contribution rate in the Super Contribution field.

Description

Use this field to provide a brief description of the income entry for easy identification.

How Added Income Shows in Your Cashflow

Added income shows in three locations within your Cashflow scenario:

Overall Position > Cash Account Sheet

Income entries for the client, partner, or joint ownership appear under the Inflows section.

Taxation Sheet

Taxable income entries automatically flow to the Taxation Sheet for calculations.

Trusts or Companies

Income added for trusts or companies will appear in their respective cash account sheets.

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