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System Spec

Purpose

Track the financial health of the trading business. Balance sheet, P&L, cash flow, asset depreciation, subscription tracking, prop firm challenge expenses.

Domain: accounting.fatbot.ai Currency: GBP (£) Status: Built and running on port 3100


Core Features

1. Balance Sheet

Standard accounting equation: Assets = Liabilities + Equity

Assets

Type Description Examples
Cash & bank Liquid funds on hand Current account, savings, broker cash
Accounts receivable Money owed to you Outstanding invoices
Fixed assets Purchased items with value Computers, monitors, equipment

Liabilities

Type Description Examples
Accounts payable Money you owe Bills due, credit card balance
Loans Debt obligations Equipment financing, investor loans
Tax liability Estimated tax owed Quarterly estimates

Equity

Type Description
Owner's Capital Money you invested into the business
Investor Capital Money others invested into the business
Retained Earnings Accumulated profit not withdrawn
Owner's Draws Money taken out

2. Revenue Tracking

  • Monthly revenue input
  • Revenue categories: Trading Income, Service Income, Other Income
  • Year-over-year view with monthly grid
  • YTD totals and monthly averages

3. Expense Tracking

Expense Categories (Pre-seeded)

  • Software & Subscriptions
  • Hardware & Equipment
  • Data & Market Feeds
  • Education & Training
  • Infrastructure (hosting, domains, VPS)
  • Professional Services
  • Prop Firm Challenges — dedicated category for tracking trading capital expenses
  • Depreciation Expense
  • Other Expenses

4. Prop Firm Challenges

Tracked as a dedicated expense category (prop_firm). When you pay for a challenge account: - Add as expense, select "Prop Firm Challenges" as expense account - Shows as its own line in P&L - Description field captures firm name and account details

5. Fund Account (Capital Injection)

For recording money coming into the business from investors or creditors: - Equity sources: Owner's Capital, Investor Capital - Liability sources: Investor Loans, Loans - Deposits into: Any asset account (Current Account, Savings, Broker Cash)

This is separate from Revenue — capital is not earned income.

6. Asset Management & Depreciation

Depreciation Methods

Straight-line (default):

Monthly depreciation = (Purchase price - Salvage value) / (Useful life years x 12)

Declining balance (accelerated):

Monthly depreciation = Book value x (2 / (Useful life years x 12))

One-click "Depreciate" button on each asset runs one month of depreciation and creates the journal entry automatically.

7. Subscription Tracker

  • Active/cancelled status
  • Monthly and annual frequencies
  • Annual costs show monthly equivalent
  • Renewal date tracking
  • One-click cancel

8. P&L Statement

  • Period selector (month, quarter, year)
  • Revenue breakdown by account
  • Expense breakdown by account (including Prop Firm Challenges)
  • Net profit with colour indicator (green/red)

9. Cash Flow

  • 6-month bar chart on dashboard
  • Revenue vs expenses per month
  • Net cash flow (green positive, red negative)

Pre-seeded Chart of Accounts (27)

Assets (7)

Current Account, Savings Account, Broker Cash, Accounts Receivable, Computer Equipment, Office Equipment, Software Assets

Liabilities (4)

Credit Card, Accounts Payable, Tax Payable, Loans, Investor Loans

Equity (4)

Owner's Capital, Investor Capital, Retained Earnings, Owner's Draws

Revenue (3)

Trading Income, Service Income, Other Income

Expenses (9)

Software & Subscriptions, Hardware & Equipment, Data & Market Feeds, Education & Training, Infrastructure, Professional Services, Prop Firm Challenges, Depreciation Expense, Other Expenses


What This Does NOT Do

  • Trading P&L calculation (that's the TradingDesk Evaluation Layer)
  • Broker account management (that's the Broker Layer)
  • Tax filing or compliance
  • Multi-currency conversion (GBP only)
  • Invoicing or billing