Accounting

The Chart of Accounts (CoA) is the foundation of your accounting system. It defines every account where financial transactions are recorded. Accounts are organized in a hierarchical tree with parent/child relationships.

Account Types

• Asset — Cash, bank accounts, accounts receivable, inventory, fixed assets, prepaid expenses
• Liability — Accounts payable, loans, accrued expenses, tax payable, deferred revenue
• Equity — Ownerʼs equity, retained earnings, common stock
• Revenue — Sales revenue, service revenue, interest income
• Expense — Cost of goods sold, salaries, rent, utilities, marketing, depreciation

Account Structure

Each account has: a unique code (e.g., 1000, 1100), a name, account type, parent account (for hierarchy), currency, active/inactive status, and whether itʼs a group (parent only) or leaf (can receive transactions).

Account Currency

When creating an account, select its currency from a dropdown of 55+ currencies. Fixed assets derive their currency from their linked GL asset account. Multi-currency transactions use exchange rates for conversion.

Journal entries are the core of double-entry bookkeeping. Every entry must balance — total debits must equal total credits.

Entry Types

• Standard — Regular day-to-day transactions
• Adjusting — Period-end adjustments (accruals, deferrals)
• Closing — Year-end closing entries (close revenue/expense to retained earnings)
• Reversing — Auto-reversing entries (accruals that reverse next period)
• Opening Balance — Initial balances when setting up a new fiscal year

Creating a Journal Entry

1. Navigate to Accounting → Journal Entries → Create
2. Set the entry date, type, and description
3. Fiscal year and period are auto-resolved from the entry date (or manually entered)
4. Add journal lines — select an account, enter debit or credit amount
5. The system validates that debits = credits before posting
6. Click Create — the entry is posted to the general ledger

Entry Numbering

Auto-generated format: JE-{year}-{sequence}, e.g., JE-2026-00001. The fiscal year is derived from the start date of the matched fiscal year, ensuring correct numbering.

Statuses

Draft (editable), Posted (locked, affects ledgers), Reversed (voided with a reversing entry). Posted entries can be reversed but not edited.

Fiscal years define your accounting calendar. Each fiscal year has a start date, end date, name, and status (open, closed, or locked).

Managing Fiscal Years

• Create: Set the name (e.g., FY2026), start date, and end date. Only one fiscal year can cover a given date range.
• Close: Once closed, no new journal entries can be posted to that fiscal year. Closing is permanent.
• Lock: Prevents modifications but allows certain adjustments.
• Delete: Only open fiscal years with no journal entries in their date range can be deleted. The API enforces this constraint.

Fiscal Periods

Each fiscal year is divided into 12 periods (months). Journal entries are assigned to a period based on their entry date. Period 1 = first month of the fiscal year.

The Accounting module includes a full suite of standard financial reports:

Trial Balance

Lists all accounts with their debit and credit balances for a given period. The foundation report that verifies the ledger is balanced.

Profit & Loss (Income Statement)

Revenue minus expenses = net profit/loss. Shows business performance over a period. Filter by date range, compare to budget, or view by department/cost center.

Balance Sheet

Assets = Liabilities + Equity. Snapshot of financial position at a point in time. Includes current/non-current classification.

Cash Flow Statement

Operating, investing, and financing cash flows. Shows how cash moves through the business.

Financial Ratios

Key metrics: current ratio, quick ratio, debt-to-equity, gross margin, net margin, ROA, ROE. Automated calculations from your ledger data.

Create budgets per fiscal year with account-level detail. Compare actuals vs. budget in financial reports.

Budget Types

Revenue budgets, expense budgets, or comprehensive (all accounts). Budgets can be created at the account or account-group level.

Budget vs. Actuals

Reports show budgeted amounts alongside actual ledger balances, with variance and percentage difference. Useful for financial planning and cost control.

Manage your companyʼs fixed assets — equipment, vehicles, buildings, furniture, and intangible assets. Track acquisition cost, depreciation, and net book value.

Asset Currency

Each fixed asset derives its currency from its linked GL asset account, not a hardcoded default. This ensures multi-currency asset tracking is accurate.

Depreciation

Support for straight-line and declining balance methods. Depreciation entries can be posted to the general ledger. Track accumulated depreciation and net book value.

Asset Lifecycle

Acquisition → In Service → Depreciating → Fully Depreciated → Disposed. Each stage updates the assetʼs status and book value.

Comprehensive tax configuration with four sub-modules:

Tax Rates

Define tax rates with percentage, name, and type (Sales Tax, VAT, GST, etc.). Rates are used on invoices and purchase orders.

Tax Groups

Combine multiple tax rates into groups (e.g., State Tax + County Tax). Tax groups can be applied as a unit to transactions.

Tax Jurisdictions

Define geographic tax jurisdictions and the rates that apply in each. Useful for businesses operating in multiple tax regions.

Withholding Tax

Configure withholding tax rates and rules. Applied to vendor payments where tax must be withheld at source.

Intercompany Relationships

Define relationships between entities within your organization. Each relationship specifies the two entities and the accounts used for intercompany transactions.

Intercompany Transactions

Record transactions between related entities. Each transaction creates corresponding entries in both entitiesʼ ledgers. Supports eliminations for consolidated reporting.

Manage foreign exchange rates for multi-currency accounting.

Exchange Rate Management

Create and update exchange rates between currency pairs. Rates are used for foreign currency transactions and revaluation.

FX Revaluation

Period-end process that revalues foreign currency balances at current exchange rates. Generates unrealized gain/loss journal entries. The revaluation form guides you through selecting accounts, setting the revaluation date, and posting entries.

Cost centers allow you to track revenue and expenses by department, project, location, or any other dimension.

Setting Up Cost Centers

Create cost centers with a name, code, and type. Assign cost centers to journal entry lines to segment financial data.

Cost Center Reporting

Filter Profit & Loss and other reports by cost center to see performance by segment.

Manage your companyʼs bank accounts and link them to GL accounts.

Bank Account Setup

Each bank account has: bank name, account number, account name, branch, routing number, SWIFT code, currency, and linked GL account. Bank details appear on invoices for payment instructions.

Bank Reconciliation

Match bank statement lines to ledger transactions. Import bank statements and reconcile against your GL. Track unreconciled items and investigate discrepancies.

Bank Statements

Import or manually enter bank statements. Statement lines are matched to ledger entries during reconciliation.

Automate repetitive journal entries with recurring entry templates.

Setting Up Recurring Entries

Define the journal entry template (accounts, amounts, description) and set a frequency (monthly, quarterly, annually). The system automatically creates journal entries on schedule.

Common Uses

Monthly depreciation, prepaid expense amortization, accrued revenue recognition, recurring vendor payments, subscription billing allocations.

Reconcile GL account balances against external sources (bank statements, vendor statements, sub-ledgers).

Reconciliation Process

1. Select the account to reconcile
2. Enter the statement balance and date
3. Match ledger entries to statement items
4. Identify and investigate unreconciled items
5. Post adjusting entries if needed
6. Finalize the reconciliation

The period close workflow guides you through month-end and year-end closing procedures.

Period Close Checklist

A structured checklist ensures all necessary steps are completed: reconcile bank accounts, post adjusting entries, review trial balance, close sub-ledgers, generate financial reports, lock the period.

Year-End Close

Additional year-end steps: close revenue and expense accounts to retained earnings, finalize depreciation, process FX revaluation, generate annual financial statements, lock the fiscal year.

The audit trail provides a complete, immutable history of every financial transaction in the system.

What is Logged

• Every journal entry creation, edit, reversal, and deletion
• Account creation, modification, and status changes
• Fiscal year creation, status changes, and deletion
• All changes with user ID, timestamp, and before/after values

Using the Audit Trail

Filter by date range, user, action type, or affected record. Export audit logs for compliance or external audit. The audit trail is read-only — records cannot be modified or deleted.

Automatic Journal Entries

The following operational events automatically create journal entries:

• Invoice payment: Debit Bank, Credit Accounts Receivable
• Expense approval: Debit Expense Account, Credit Reimbursement Liability
• Goods receipt: Debit Inventory Asset, Credit Goods Received Not Invoiced
• Asset depreciation: Debit Depreciation Expense, Credit Accumulated Depreciation

General Ledger Integration

Every journal entry line updates the accountʼs ledger balance. Ledger balances are the source for trial balance, P&L, and balance sheet reports.