What is an account?

Learn how to manage your Accounts.

Jacob van den Berg avatar
Written by Jacob van den Berg
Updated this week

A transaction occurs between two Accounts. In any transaction (financial event), an amount is deducted (credited) from one place and added (debited) to another. In Bkper we simply refer to these places as Accounts, and as we saw before the transferral of an amount between accounts is a transaction.

Many bookkeeping and accounting software solutions predefine account into roles as customers, providers, accounts receivables and others. This approach limits your possibilities when it comes to tracking transactions according to your needs in perhaps a much more natural flow.

Rather than assigning roles to accounts, in Bkper accounts can carry any role and are only defined by their accounting nature. Assets, Liabilities, Incoming and Outgoing* are the four account types that can be assigned and that define their behavior within the system.

The lack of predefined roles offers greater flexibility as to the granularity that can be tracked. One can simply track Expenses, or drill down a bit and define Rent and Transport or get even more granularity defining accounts for Car insurance, Gasoline, Car Repairs etc.

Account types:

Asset: real account like bank account, cash and savings or receivables, like customers

Liability: debts like your credit card, a supplier or person you owe, a loan, etc

Incoming: revenues like the salary you receive, a product or service you sell, etc

Outgoing: expenses like rent, transportation, salaries of your employees, etc

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