Guides
Settings
Organization
Finance

Finance

Finance settings allow you to manage your organization’s financial accounts such as bank accounts, credit cards, and cash accounts. These accounts are used to track money flow when making payments to vendors or receiving payments from customers.

Accessing Finance Settings

  1. Navigate to Settings from the main menu
  2. Click on Organization from the settings categories
  3. Select Finance from the organization settings options

Finance Accounts Overview

The Finance page displays all your financial accounts with the following information:

  • Name: Account name for easy identification
  • Bank: Bank name (for bank accounts)
  • Branch: Bank branch location
  • Type: Account type (Cash, Credit Card, or Bank Account)
  • Current Balance: Available balance with currency symbol

You can search for accounts by typing the account name in the search bar.

Managing Finance Accounts

Creating New Accounts

  1. Click the + New button at the top of the accounts list
  2. Select the account type
  3. Fill in account details
  4. Set the opening balance
  5. Save the new account

Editing Existing Accounts

  1. Click the Edit button for the account you want to modify
  2. Update account information as needed
  3. Save your changes

Removing Accounts

  1. Go to the edit page for the account you want to remove
  2. Click the Delete button
  3. Confirm the deletion

Important: You can only delete accounts that have not been used in any transactions.

Account Information Fields

Basic Account Information

Account Type (Required)

  • Select the type of financial account
  • Choose from three available options
  • Determines what additional fields are shown

Account Name (Required)

  • Enter a descriptive name for the account
  • Maximum 100 characters allowed
  • Use names that help identify the account easily
  • Examples: “Main Business Account”, “Petty Cash”, “Company Credit Card”

Account Number (Optional)

  • Enter the account number if applicable
  • Maximum 25 characters allowed
  • Useful for bank accounts and credit cards
  • Leave blank for cash accounts

Currency (Required)

  • Select the currency for this account
  • Cannot be changed after account creation
  • Should match the currency you use for this account
  • Important for accurate transaction recording

Opening Balance (Required for new accounts)

  • Enter the starting balance for the account
  • Required when creating new accounts
  • Cannot be changed after account creation
  • Should reflect actual account balance when you start using Lekha

Account Types

Cash

  • For tracking physical cash
  • Used for petty cash, till money, or cash on hand
  • No banking details required
  • Simple setup for cash-based transactions

Credit Card

  • For tracking credit card accounts
  • Used when making payments via credit card
  • Helps track credit card expenses
  • Balance typically starts negative

Bank Account

  • For tracking bank accounts
  • Most common type for business transactions
  • Requires additional banking information
  • Used for electronic payments and deposits

Bank-Specific Information

When you select “Bank Account” as the account type, additional fields become available:

Bank Name (Optional)

  • Enter the name of your bank
  • Maximum 100 characters allowed
  • Examples: “State Bank of India”, “HDFC Bank”, “ICICI Bank”

Branch Name (Optional)

  • Enter the branch location
  • Maximum 100 characters allowed
  • Examples: “Main Street Branch”, “City Center Branch”

IFSC Code (Optional)

  • Enter the Indian Financial System Code
  • Maximum 25 characters allowed
  • Used for electronic fund transfers in India
  • Format: Usually 11 characters (e.g., SBIN0001234)

SWIFT Code (Optional)

  • Enter the international bank identifier code
  • Maximum 25 characters allowed
  • Used for international wire transfers
  • Format: Usually 8 or 11 characters (e.g., SBININBB123)

Setting Up Finance Accounts

Step 1: Determine Account Types Needed

  • Identify all bank accounts used for business
  • List credit cards used for business expenses
  • Determine cash accounts needed (petty cash, till)

Step 2: Create Each Account

  1. Start with your main business bank account
  2. Add secondary bank accounts if any
  3. Create credit card accounts for business cards
  4. Set up cash accounts for physical money

Step 3: Set Accurate Opening Balances

  • Use actual bank statement balances
  • Include credit card outstanding amounts
  • Count physical cash accurately
  • Ensure all amounts are current

Step 4: Verify Account Setup

  • Review all account information
  • Test creating a sample transaction
  • Ensure accounts appear in payment/receipt options
  • Confirm balances are tracking correctly

Best Practices

Account Naming

  • Use clear, descriptive names
  • Include bank name for bank accounts
  • Specify purpose (e.g., “Payroll Account”, “Expense Card”)
  • Keep names consistent and professional

Account Organization

  • Set up accounts before starting transaction entry
  • Create separate accounts for different purposes
  • Don’t create too many similar accounts
  • Consider how you’ll use accounts in daily operations

Balance Management

  • Start with accurate opening balances
  • Reconcile accounts regularly with bank statements
  • Monitor account balances for accuracy
  • Address discrepancies promptly

Security Considerations

  • Limit access to sensitive account information
  • Use secure account numbers and codes
  • Regularly review account activity
  • Keep bank details confidential

Common Account Setup Examples

Small Business Setup

  • Main Business Account (Bank Account)
  • Petty Cash (Cash)
  • Business Credit Card (Credit Card)

Larger Business Setup

  • Operating Account (Bank Account)
  • Payroll Account (Bank Account)
  • Savings Account (Bank Account)
  • Corporate Credit Card (Credit Card)
  • Petty Cash - Office (Cash)
  • Petty Cash - Warehouse (Cash)

Service Business Setup

  • Business Checking (Bank Account)
  • Business Savings (Bank Account)
  • Expense Credit Card (Credit Card)
  • Cash Receipts (Cash)

Troubleshooting

Common Issues

Cannot Delete Account

  • Check if account has been used in transactions
  • Remove account from any default settings
  • Consider making account inactive instead
  • Contact support if deletion is necessary

Balance Discrepancies

  • Verify opening balance was entered correctly
  • Check all transactions affecting the account
  • Compare with bank statements
  • Look for missing or duplicate transactions

Account Not Appearing in Transactions

  • Ensure account type is appropriate for transaction
  • Check that account is set up correctly
  • Verify account is not disabled
  • Refresh the page and try again

Currency Issues

  • Confirm currency matches actual account currency
  • Remember currency cannot be changed after creation
  • Create new account if currency is wrong
  • Consider exchange rate implications

Setup Recommendations

Initial Setup

  • Start with essential accounts only
  • Add more accounts as needed
  • Test with small transactions first
  • Train team on account selection

Ongoing Maintenance

  • Review accounts monthly
  • Archive unused accounts
  • Update bank details when they change
  • Monitor for unauthorized transactions

Integration with Other Modules

Finance accounts integrate with:

  • Payments: Select accounts when making vendor payments
  • Receipts: Track customer payments into specific accounts
  • Expense Management: Record expenses against appropriate accounts
  • Bank Reconciliation: Match transactions with bank statements
  • Financial Reporting: Account balances appear in financial reports
  • Cash Flow Analysis: Track money movement between accounts

Proper finance account setup ensures accurate financial tracking, enables effective cash flow management, and provides clear audit trails for all money movements in your business.

Users