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MindBridge Account Classification (MAC) system

Article author
Jonathon Plowman-Samson
  • Updated

Summary

Learn how to use the MindBridge Account Classification ("MAC") code system.


What is the MAC system?

MindBridge uses the MAC system to classify your client’s unique accounts and to determine the impact each account has on an organization’s balance sheet and income statements. This multi-level hierarchy can map accounts across a wide and diverse range of industries, into a single, consistent classification system.

The MAC system follows Canada’s General Index of Financial Information (GIFI), but we've added our own numbering convention that MindBridge can understand.

  • At the highest level (L1), accounts are divided into major categories such as assets and liabilities.
  • The next level (L2) breaks off into subcategories, including current assets and long-term assets.
  • The third level (L3) separates accounts by their business purpose, such as accounts payable and accounts receivable.
  • The lowest level (L4) applies fine-grained details to the L3 categories. This level classifies accounts by their specific purpose, such as inventories of goods for sale and inventories of raw materials.

Export the attached .xlsx file below this article for the full list of MAC codes.

 

Map your accounts to MAC

Tip: If your firm leverages customized account groupings, your admin may have already mapped the account groupings to the MAC structure. If so, you can basically skip account mapping!
Note: MindBridge maps accounts automatically, but you must verify the accuracy of those mappings.

To map accounts to the MAC system, it is easiest to start mapping with the L4 categories. Based on your choice, MindBridge can infer what the L1 through L3 categories are, and can fill in the blanks.

The MAC hierarchy represents a move away from strict adherence to a specific type of account, and toward a classification of accounts. This is optimal for representing charts of accounts (COA) rather than for reporting purposes.

When you import a general ledger file, MindBridge automatically maps your accounts based on the leading digit of each account number:

  • 1 - Assets
  • 2 - Liabilities
  • 3 - Equity 
  • 4 - Revenue 
  • 5-8 - Expenses
  • 0 - Fixed assets
Note: If the data uses account descriptions instead of account numbers, be diligent when verifying the account mappings, as these mappings provide MindBridge with the knowledge needed to learn.

If a mapping is mismatched during the Map Columns step, use the Account Type menu to refine the column as needed.

If the charts of accounts does not use a numerical account classification system, accounts may be mapped to the wrong classification because the leading digit is missing.

 


How do control points use MAC codes?

With MAC codes, MindBridge can apply control points across all businesses and industries consistently, regardless of the functional structure of the organization.

  • Rule-based control points: MAC codes help MindBridge detect which credits are cash expenditures, which expenses are bad debts, and whether a flurry of activity is related to an expense account or not.
  • Machine-learning control points: MAC codes help MindBridge thoroughly analyze a dataset and raise insights such as, “This expense account is usually associated with decreases in inventory, but in this one case, an expense account associated with a decrease in cash” (see our Rare Flow article).
  • Statistical control points: Detects surface-level information such as digit counts, or the number of accounts within a transaction, and so do not need to reply on MAC codes to identify the line item or transaction’s underlying structure.


How flexible is the MAC structure?

The MAC structure is consistent across all organizations, regardless of industry, but MindBridge developers are able to tune control points to provide consistent value across organizations, even if they have different structures or accounting practices.


Anything else on your mind?

Head over to the community with your thoughts and inquiries! You can also chat with us, or, submit a request for further assistance.

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