Chart of accounts
Account types, GL codes, subtypes and opening balances.
The chart of accounts lists every account in your general ledger. Products, payment types and journal entries all post to these accounts.
Account types
| Type | Normal balance | MFI examples |
|---|---|---|
| Asset | Debit | Cash, bank, M-Pesa float, loan portfolio, interest receivable |
| Liability | Credit | Members’ savings, fixed deposits, borrowings, overpayments |
| Equity | Credit | Share capital, retained earnings, reserves |
| Income | Credit | Interest income, fee income, penalty income, recoveries |
| Expense | Debit | Interest on savings, salaries, loan loss provisions, write-offs |
Add an account
| Field | Required | What it means |
|---|---|---|
| Name | required | e.g. “Loan portfolio — Biashara”. |
| GL code | required | Unique number. Use a numbering scheme — e.g. 1xxx assets, 2xxx liabilities, 3xxx equity, 4xxx income, 5xxx expenses. |
| Account subtype / detail type | required | Groups the account on financial statements (subtypes are managed in accounting settings). |
| Currency | required | Account currency. |
| Opening balance | optional | Balance brought forward at go-live. |
| Payment type | optional | Link a cash or bank account to a payment type so transactions with that channel post here. |
Important
Agree the chart of accounts with your auditor before go-live — changing it after transactions exist is painful.
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