MindBridge Account Classification code system (MAC v.1) – MindBridge: English (US)

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Summary

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

Note: The MAC v.1 code system is outdated and will not receive further updates. For optimal performance and accuracy in MindBridge, account groupings must use MAC v.2, which maps to Level 3 account categories, ensuring alignment with international auditing standards and versatility across industries. MAC v.2 easily integrates with your financial hierarchy, accelerating the time to value and enhancing analysis flexibility for a diverse range of account groups.

What is the MAC v.1 code system?

MindBridge uses the MAC v.1 code system to classify 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 v.1 code hierarchy follows Canada’s General Index of Financial Information (GIFI), but with different codes. This means that GIFI codes are acceptable for use instead of MAC v.1 codes, and do not require re-mapping.

MindBridge offers up to 5 levels of account hierarchy. Each level indicates a higher level of account granularity. For example:

Assets(Level 1) — Accounts are divided into major categories such as assets and liabilities
- Capital assets(Level 2) — Accounts are broken off into subcategories, including current assets and long-term assets
  - Building-related(Level 3) — Separates accounts by their business purpose, such as accounts payable and accounts receivable
    - Buildings under construction(Level 4) — If this is the lowest-level account, accounts are classified by their specific purpose, if not, it adds further granularity to the L3
      - Work in progress (Level 5) — If the account structure has accounts at the fifth level (L5), these will be the most granular accounts. This level classifies accounts by their specific purpose, such as inventories of goods for sale and inventories of raw materials.

Only the most granular account must be mapped. MindBridge will automatically fill in the account mappings for the higher levels.

Export the attached .xlsx file below this article for the full list of MAC v.1 codes.

Map your accounts to MAC v.1

Tip: If your firm leverages customized account groupings, your admin may have already mapped the account groupings to the MAC v.1 system. 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 v.1 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 v.1 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 v.1 codes?

With MAC v.1 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 v.1 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 v.1 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 rely on MAC v.1 codes to identify the line item or transaction’s underlying structure.

How flexible is the MAC v.1 structure?

The MAC v.1 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.

Export the attached .xlsx files for the full list of MAC v.1 codes: