A Transaction occurs between two Accounts. In any transaction (financial event), an amount is deducted from one place and added 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.
Accounts in Bkper are completely flexible, without predefined roles or categories, allowing you to structure and restructure them in a way that best suits your needs. You have full control over the level of detail. Track all Expenses in a single Account, create separate Accounts for Transport and Rent, or go even further with specific Accounts for Car Insurance, Gasoline, and Car Maintenance.
The Nature of Accounts is 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 four Account types and their color representation:
Asset: real account like bank account, cash and savings or receivables, like customers. Asset accounts are Permanent Debit accounts and are colored blue.
Liability: debts like your credit card, a supplier or person you owe, a loan, etc
Liability accounts are Permanent Credit accounts and are colored yellow.
Incoming: revenues like the salary you receive, a product or service you sell, etc
Incoming accounts are Non Permanent Credit accounts and are colored green.
Outgoing: expenses like rent, transportation, salaries of your employees, etc
Outgoing accounts are Non Permanent Debit accounts and are colored red.
Note: Equity is the result of Assets and Liabilities, therefore there is no Equity account type in Bkper. These results are represented in gray colored groups.
Accounts how to: Working with Transactions