FAQ: How Do I Get Rid of 'Missing Gross Income on the Cash Flow Diagram?

The cash flow diagram provides an essential overview of your financial situation, but sometimes you might encounter an issue where the platform flags "Missing Gross Income." Below is a step-by-step guide to help you identify and resolve this issue effectively.

Step 1: Understand the "Missing Gross Income" Notification

The "Missing Gross Income" alert occurs when:

  1. Gross income, deductions, and net income do not align:
    • Gross income – Deductions = Net income
    • If these values don't add up, the platform identifies a discrepancy
  2. Expenses and savings exceed net income:
    • When total expenses and savings recorded in your plan are higher than the net income, the platform flags the shortfall as "Missing Gross Income."

Step 2: Verify Your Inputs

  1. Check Gross Income

    • Navigate to the Income Section.
    • Ensure the gross income is entered accurately for all income phases (e.g., employment, part-time work, CPP, or OAS).
    • Gross income should be in today’s dollars; the platform adjusts for inflation automatically.

  1. Check Deductions

    • Review deductions such as:
      • Pension contributions
      • Group insurance
      • Taxes (CPP, EI, and income tax)
    • Ensure deductions are realistic and align with your current and projected employment circumstances.

  1. Check Net Income

    • Verify that the net income reflects your actual take-home pay.
    • If you manually entered net income, ensure it's consistent with the calculation: Gross Income – Deductions = Net Income.

Step 3: Evaluate Savings and Expenses

If your expenses and savings exceed net income, you need to adjust the entries:

  1. Review Savings Contributions:
    • Check RRSP, TFSA, or other savings amounts entered in the platform.
    • Confirm that these values are realistic and sustainable based on your net income
  2. Analyze Expenses:
    • Ensure all expense categories are accurate (housing, transportation, insurance, discretionary spending, etc.).
    • Look for any duplicated or overestimated expenses.
  3. Adjust Overestimated Entries:
    • Lower savings or expenses to match your actual financial situation.

Additional Tips

  • Small Discrepancies: If the "Missing Gross Income" amount is minor (e.g., under $100), it’s generally not a concern. The platform recalculates taxes, CPP, and EI deductions dynamically each year.
  • Large Discrepancies: For larger amounts, revisit all sections carefully to ensure no data entry errors or unrealistic assumptions.

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