Accounting & Financial Books

Ledgers, charts of accounts, cash/bank reconciliation, and tax

4 min read Updated Sep 20, 2026

Overview

What is Accounting in KhataIN?

Accounting in KhataIN 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.

Overview

Recommended setup order

Set up Accounting in this order so transactions post to the right place.

Company Profile: Confirm the legal business details used throughout the workspace.
Financial Accounts: Add the bank, cash and supported payment accounts you need to track independently.
Chart of Accounts: Review the default structure before adding or changing accounts.
Opening Balances Optional: Enter the starting balances needed when moving an existing business into KhataIN.
Start Recording: Begin daily activity only after the fiscal year and opening position are correct.

Overview

How money flows in KhataIN

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.

Accounting flow

1Sales / POS
2Transactions
3Accounts
4Reports

Overview

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.

Overview

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.
Chart of Accounts: Classify financial activity into assets, liabilities, equity, income and expenses.
Journal Entries: Create controlled debit and credit adjustments when a normal workflow is not appropriate.
Reconciliation: Compare KhataIN records with external statements and resolve differences.

Overview

Common workflows

Choose the workflow that represents what actually happened.

Direct expense

1Choose Expense
2Select payment account
3Classify expense
4Post and review

Move your own money

1Choose Transfer
2Select source
3Select destination
4Confirm movement

Check the bank

1Choose account
2Choose period
3Compare statement
4Resolve differences

Overview

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.

Overview

Avoid common 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 KhataIN with external statements to identify missing, duplicated or incorrect records.

Overview

Need more help?

Still unsure how to record something? Search the Accounting Manual or contact support before creating a duplicate transaction or unnecessary journal entry.