Chart of accounts

The chart of accounts is the backbone of your accounting system. Every financial transaction posts to at least two accounts. MSME Link ships with a standard chart suitable for most businesses, which you can extend or modify.

Account types

• Assets — what the business owns (cash, bank accounts, inventory, fixed assets, receivables).
• Liabilities — what the business owes (supplier payables, loans, tax liabilities).
• Equity — the owners' stake in the business.
• Revenue — money earned from sales and other income.
• Expenses — money spent to run the business.
• Cost of Sales — direct costs of goods sold.

Creating an account

1. 1Go to Accounts → Chart of Accounts and click New Account.
2. 2Select the account type and parent header. The code is auto-generated but can be customised.
3. 3Mark the account as a Header if it is a grouping account only (no direct postings).
4. 4Set the account as inactive to hide it from posting dropdowns without deleting it.

GL Settings

Go to Settings → GL Settings to assign system default accounts — Accounts Receivable, Accounts Payable, inventory, VAT, and more. These defaults are used whenever a product doesn't have its own account override.