Accounting & Financial Books
Ledgers, charts of accounts, cash/bank reconciliation, and tax
What is Accounting in KhataPal?
Accounting in KhataPal records and organizes your financial activity — income, expenses, transfers, bank movement and adjustments — into useful records and reports such as Profit & Loss, Balance Sheet and tax workpapers.
- Accurate records
- Keep transactions organized, connected and traceable.
- Understand performance
- See whether the business made a profit or loss.
- Stay compliant
- Prepare reliable records for tax and compliance workflows.
- Make better decisions
- Use current financial information to understand the business.
Set up Accounting first
Set up Accounting in this order so transactions post to the right place.
- Company ProfileOpen ↗
Confirm the legal business details used throughout the workspace.
- Financial AccountsOpen ↗
Add the bank, cash and supported payment accounts you need to track independently.
- Chart of AccountsOpen ↗
Review the default structure before adding or changing accounts.
Enter the starting balances needed when moving an existing business into KhataPal.
- Start RecordingOpen ↗
Begin daily activity only after the fiscal year and opening position are correct.
How money flows in KhataPal
Here’s how your business transactions flow through the system. Operational modules create connected records, so their financial effect should not be entered again manually.
- 1Sales / POS
- 2Transactions
- 3Accounts
- 4Reports
When to use Transactions
Use direct transactions for activity that does not belong to a customer invoice, vendor bill or POS sale.
- Income
Record money received outside the Sales or POS workflow, such as interest or miscellaneous income.
- Expense
Record direct business costs such as rent, bank fees or utilities when no purchasing document is required.
- Transfer
Move money between your own financial accounts. A transfer is not income or an expense.
Key Accounting areas
Use focused Accounting guides for Financial Accounts, Chart of Accounts, Transactions, Journal Entries, Imports, Recurring Rules, Reconciliation and Reports.
- Financial Accounts
Track cash, banks, wallets and other places money is held.
Open ↗ - Chart of Accounts
Classify financial activity into assets, liabilities, equity, income and expenses.
Open ↗ - Journal Entries
Create controlled debit and credit adjustments when a normal workflow is not appropriate.
Open ↗ - Reconciliation
Compare KhataPal records with external statements and resolve differences.
Open ↗
Common workflows
Choose the workflow that represents what actually happened.
- 1Choose Expense
- 2Select payment account
- 3Classify expense
- 4Post and review
- 1Choose Transfer
- 2Select source
- 3Select destination
- 4Confirm movement
- 1Choose account
- 2Choose period
- 3Compare statement
- 4Resolve differences
Important concepts
Posted records form the financial books. Reports reflect the records entered, so missing, duplicated or incorrectly classified transactions will also appear in the reports.
- Posted records form the books
- Once activity is posted, it becomes part of the financial record used by balances and reports.
- Reports reflect your records
- Missing, duplicated or incorrectly classified transactions will also be reflected in financial reports.
- Use the correct workflow
- Sales, Purchasing, POS and Transactions should handle normal activity; journals are for genuine accounting adjustments.
Most everyday activity should come through Sales, Purchasing, POS or Transactions. Use Journal Entries for genuine accounting adjustments, and consult your accountant or bookkeeper when you are unsure.
Common accounting mistakes
Check these points before creating or changing Accounting records.
- Do not duplicate module transactions
If Sales, Purchasing or POS already created the financial effect, do not enter it again manually.
- Do not treat transfers as income or expenses
Moving money between your own accounts only changes where the money is held.
- Use Journal Entries carefully
Normal daily activity should use the regular workflow instead of direct debit and credit adjustments.
- Do not ignore reconciliation
Compare KhataPal with external statements to identify missing, duplicated or incorrect records.
Unsure how to record something?
Still unsure how to record something? Search the Accounting Manual or contact support before creating a duplicate transaction or unnecessary journal entry.
Still stuck? Contact support