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Master Accounts

Master Accounts are the foundation of your financial model's structure. They define the root code prefixes that classify every account into a specific financial statement. When you assign a prefix to a statement category, every account whose code begins with that prefix is automatically routed to the correct worksheet in the generated Excel model.

Think of Master Accounts as the chart of accounts' top-level classification system. Just as a traditional chart of accounts groups ledger entries under major categories (Assets, Liabilities, Revenue, Expenses), Master Accounts tell the model builder which accounts belong to which financial statement.

How Classification Works

Each account in your model has a dotted hierarchical code (for example, 3.01 for Net Revenue or 1.02 for Fixed Assets). The leading segment of that code is the prefix. Master Accounts map these prefixes to financial statements:

| Prefix | Statement | Example Accounts | |--------|-----------|-----------------| | 1 | Assets (Balance Sheet) | 1.01 Cash, 1.02 Fixed Assets | | 2 | Liabilities (Balance Sheet) | 2.01 Accounts Payable, 2.02 Long-Term Debt | | 3 | Income Statement | 3.01 Revenue, 3.05 Operating Expenses | | 4 | Cash Flow Statement | 4.01 Operating Cash Flow, 4.02 Investing | | 5 | Free Cash Flow | 5.01 Free Cash Flow |

The prefix values shown above are examples. You can choose any numeric prefix that fits your organization's chart of accounts convention.

Settings

Income Statement Prefix

The code prefix that identifies all Income Statement accounts. Any account whose code starts with this prefix will appear in the Income Statement worksheet. Typical assignment: 3.

Assets Prefix

The code prefix for Balance Sheet asset accounts. These are resources the company owns or controls. Typical assignment: 1.

Liabilities Prefix

The code prefix for Balance Sheet liability and equity accounts. These represent obligations and owners' claims. Typical assignment: 2.

Cash Flow Statement Prefix

The code prefix for Cash Flow Statement accounts. These accounts track cash inflows and outflows from operating, investing, and financing activities. Typical assignment: 4.

Free Cash Flow Prefix

The code prefix for Free Cash Flow accounts. Free Cash Flow represents cash available to investors after the company funds its operations and capital expenditures. Typical assignment: 5.

FCF Account Code

The specific account code (not just the prefix) that holds the final Free Cash Flow figure used in DCF valuation. For example, if your free cash flow line is account 5.01, enter that full code here. The valuation block reads this account to discount future cash flows.

EBITDA Account Code

The specific account code for EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This code is used in the valuation block's NPV/EBITDA multiple. Enter the full account code, such as 3.07.02.

Field Validation

As you enter or change prefixes, the application validates them against your existing accounts. A green checkmark appears next to each prefix field when:

  • The prefix matches at least one account in your chart of accounts.
  • No two statement categories share the same prefix.

If a prefix does not match any existing accounts, a warning indicator appears. This does not prevent you from saving, but it means no accounts will be classified under that statement until you create accounts with matching codes.

The Relationship Between Master Codes and Account Hierarchies

Master Accounts work hand-in-hand with the account hierarchy you define in the Accounts section. Here is how they connect:

  1. Master prefix determines which financial statement an account belongs to.
  2. Account hierarchy (the dotted code structure) determines how accounts are grouped and subtotaled within that statement.
  3. Sheet type (Total, Analytic, Sum of ..., Percentage of ..., and the rest) determines how values are calculated.

For example, with an Income Statement prefix of 3:

  • Account 3 (Net Income) is the top-level Total.
  • Account 3.01 (Revenue) is a child that rolls up into 3.
  • Account 3.01.01 (Product Revenue) is a child of 3.01.

The master prefix 3 places all of these in the Income Statement. The hierarchy determines the indentation and subtotal structure. Together, they produce a properly structured financial statement in the output.

Best Practices

  • Keep prefixes simple. Single-digit prefixes (1-9) are the most common and easiest to manage.
  • Follow accounting conventions. If your organization already has a chart of accounts numbering scheme, align your prefixes with it.
  • Define all five prefixes before creating accounts. Changing prefixes after accounts exist can break classifications.
  • Set the FCF and EBITDA account codes after you have created those specific accounts in the Accounts section.