Table of Contents
- Overview of the Historical Balance Feature
- Historical Balance Chart Explanation
- Use Cases of Historical Balance Feature
Overview of the Historical Balance Feature
The Historical Daily Balance screen in CaFE provides a visual representation of past bank balance trends for individual bank accounts or credit cards. This feature can be accessed by selecting 'Historical Balance' from the 'Reports' dropdown in the header menu. It allows you to view balance trends over a 90-day period.
Historical Balance Chart Explanation
Time Range and Data Availability
- The chart displays a 90-day span of balance information, ending on the date specified in the 'To' field
- The 'Available since' date indicates the Starting Balance date for the account in CaFE
Retrieving Earlier Balance Information
To access data from before the 'Available since' date:
- Go to the Sync screen
- Click on 'Advanced Sync Options'
- Specify a 'From' date to retrieve earlier account balance data
For more detailed instructions, refer to the support article: My bank balance is incorrect, disagreeing with the balance in my accounting software
Understanding Chart Elements
Balance Line and Transaction Indicators
- The main line represents daily balance changes
- Circular markers (◯) on the line indicate days with transactions
- Click on a marker to view detailed transaction information for that day
Hover Information
Mouse over any point on the chart to see a tooltip displaying:
- Opening balance
- Cash In
- Cash Out
- Net Flow
- Closing balance
Credit Line Display
If a Credit Line is set for the account in the Bank Accounts screen, it appears as an orange dotted line on the chart.
Special Indicators
Special indicators on the chart highlight days with potentially critical financial situations. Understanding these markers is crucial for effective cash flow management and financial planning.
Types of Special Indicators
- Amber markers: The amount of a single cash out transaction exceeds or is equal to the opening balance on that day (plus credit line if it is set).
- Red markers: The summed amount of all the cash out transactions exceeds or is equal to the opening balance on that day (plus credit line if it is set).
Significance and Implications
- Balance Risk: Both indicators highlight days when your account balance was at risk of being depleted or overdraft.
- Cash Flow Management: Amber markers signal large individual transactions that could significantly impact your account balance, while red markers indicate cumulative transactions that might drain your account.
- Financial Planning: Frequent occurrences of these markers may suggest a need for better cash flow management or increased cash reserves.
- Overdraft Risk: These indicators help you identify days when you were at risk of overdraft fees or transaction rejections due to insufficient funds.
- Credit Line Utilization: For accounts with credit lines, these markers help monitor how close you come to maxing out your available credit.
Attention Points and Best Practices
- Regularly review days with these markers to understand the causes of near-zero or negative balances.
- If you see frequent amber or red markers, consider adjusting your cash flow strategy or discussing options with your financial advisor.
- For business accounts, these indicators can help in timing large payments or identifying needs for short-term financing.
Use Cases of Historical Balance Feature
Analyzing Cash Flow Patterns and Significant Transactions
The Historical Daily Balance feature offers valuable insights into your account's cash flow patterns and significant transactions, enabling informed financial decision-making.
Key Analysis Points
- Trend Identification: Observe recurring patterns in daily balances, such as regular income deposits or bill payments.
- Significant Transactions: Spot large cash inflows or outflows that deviate from normal patterns.
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Special Indicator Analysis:
- Amber markers: Identify days with large single transactions that risk depleting your account.
- Red markers: Recognize days when cumulative transactions risk overdrawing your account.
Actionable Insights
- Use identified patterns to forecast future cash needs and plan accordingly.
- Adjust payment schedules based on typical cash flow cycles.
- For frequent special indicator occurrences, consider revising your cash management strategy or exploring financial safeguards like overdraft protection.
Monitoring Credit Utilization for Specific Credit Accounts
The Historical Daily Balance feature allows you to track and manage credit utilization for individual credit accounts, helping maintain a healthy credit profile.
Key Analysis Points
- Balance Fluctuations: Observe how account balances change relative to the credit limit over time.
- Credit Line Visibility: The orange dotted line on the chart represents your credit limit, providing a clear reference point.
- Special Indicator Context: Pay attention to amber and red markers in relation to your credit limit, as they may indicate high utilization periods.
Actionable Insights
- Identify patterns in credit utilization to optimize payment timing and avoid consistently high balances.
- Use the historical data to plan large purchases or balance transfers at times when utilization is typically low.
- Consider setting personal alert thresholds below the actual credit limit to maintain a favorable credit utilization ratio.
Reconciling Individual Account Information
This feature facilitates the accurate reconciliation of your CaFE account data with official bank statements, ensuring financial record accuracy.
Key Analysis Points
- Balance Comparison: Compare daily balances in CaFE with your official bank statements.
- Transaction Verification: Use the detailed transaction view (accessible by clicking on circular markers) to cross-reference specific transactions.
- Discrepancy Identification: Look for days where CaFE balances differ from your bank statements, paying special attention to days with amber or red indicators.
Actionable Insights
- Regularly reconcile accounts, focusing on end-of-month periods and days with special indicators.
- For any discrepancies found, investigate the detailed transactions in both CaFE and your bank records to identify the source of the difference.
- Use insights from reconciliation to improve data entry practices or adjust synchronization settings in CaFE for more accurate future reporting.
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