Accounting basics

Overview

Accounting records invoices and journals against a chart of accounts, so financial statements stay accurate.

Purpose

Keep your books in order without separate accounting software.

Step-by-step guide

1. Open Accounting; the chart of accounts is set up automatically.
2. Issue invoices from orders; they post to the ledger.
3. Record payments and expenses as journals.
4. Review the trial balance to check everything balances.

Common mistakes

• Recording the same payment twice.
• Backdating entries into a closed period.

Best practices

• Reconcile bank and cash regularly.
• Close periods once reviewed to prevent edits.

FAQ

Do invoices post automatically?

Yes, issuing an invoice posts to the ledger.

Can I add custom accounts?

Yes, extend the chart of accounts as needed.