Accounting

Payroll Bookkeeping in Balabook

In Balabook, the payroll bookkeeping process involves approving payroll runs to generate journal entries for expenses and liabilities, manually entering payroll journal entries for accuracy, and recording employee payments to reduce payroll liabilities.

How to Bookkeep Contractor Payments

To record a contractor payment, navigate to Purchases > Bills, find the bill associated with the contractor, open it, click Record Payment, enter the payment details, and click Save.

How to Record a Sales Tax Payment, Sales Tax Refund, or Discount on Sales Tax Owed

To ensure your sales tax records are accurate, it’s important to properly document any payments, refunds, or discounts related to sales tax.

How Sales Tax is Tracked and Calculated in Balabook

Balabook automatically tracks and calculates sales tax based on the tax rates you set, applying them to invoices, bills, and transactions to ensure accurate reporting and compliance.

Taxes: Recoverable vs. Non-Recoverable

Recoverable taxes can be claimed back from tax authorities, while non-recoverable taxes are treated as a business expense and cannot be refunded.

How to Create a New Sales Tax from an Invoice, Bill

Sometimes you may encounter a new tax rate while entering an invoice or bill that isn't already set up in your system. Instead of navigating away, most systems allow you to create a new sales tax directly from the transaction screen

How to Add, Edit, or Delete a Sales Tax

Managing sales tax settings is essential for accurate billing and compliance. This guide explains how to add, edit, or delete a sales tax rate within your system.

How to Add a New Account or Category

This process allows you to create a new account or category to accurately classify your financial transactions. You can specify the account type, name, and currency to ensure it aligns with your accounting structure and reporting needs.

Overview of Your Chart of Accounts Page

The Chart of Accounts page provides a comprehensive view of all your financial accounts, categorized by type (e.g., assets, liabilities, income, expenses). It allows you to create, edit, archive, or restore accounts, helping you manage your company’s financial structure efficiently and accurately.

How to Archive or Restore an Account in Your Chart of Accounts

This process allows you to manage inactive or mistakenly created accounts by archiving them, keeping your Chart of Accounts organized. If needed, archived accounts can be easily restored later for continued use.

How to Edit an Account in Your Chart of Accounts

The Chart of Accounts is a structured list of all the accounts used to record a company’s financial transactions, organized by categories such as assets, liabilities, income, and expenses.

How to Write Off a Foreign Currency Invoice

If your business issues invoices or makes purchases in a foreign currency, Balabook automatically tracks how these values convert to your business currency.

How to Create a Foreign Currency Invoice or Bill

If your business issues invoices or makes purchases in a foreign currency, Balabook automatically tracks how these values convert to your business currency.

How to Bookkeep Petty Cash

Petty cash is a small amount of money kept on hand by a business to pay for minor, everyday expenses such as office supplies, travel reimbursements, or small repairs, typically managed outside the regular accounting system for convenience.

How to Record Gift Certificates

When you sell a gift certificate, the customer pays you in advance for goods or services that will be provided later. You need to record the receipt of payment as a liability (since you still owe them the product or service), not as income, until the certificate is redeemed.

How to Bookkeep Unbilled Income and Expenses at Year-End

Unbilled income refers to revenue that has been earned but not yet invoiced to the customer. This often happens when work is ongoing, and you need to account for the income that has been earned up to a certain point.

How to Write Off an Invoice

The direct write-off method accounts for bad debt when an invoiced amount becomes uncollectible. You can use this method if you have an unpaid invoice or an invoice that will only be partially paid.

How to Bookkeep a Deposit or Prepayment to a Customer Credit Account

Using a prepayment liability account for customer deposits ensures that advance payments are accurately tracked and applied to future invoices, properly reflecting liabilities until the deposit is used.

How to Bookkeep an Invoice Overpayment to a Customer Credit Account

Booking an invoice overpayment as a customer credit helps accurately track excess payments, ensuring that the overpaid amount is properly recorded and available for future use or refund.

How to Create Credit Notes for Overpayments

Issuing a credit note for overpayments allows you to properly account for excess amounts received from customers and apply the credit to future invoices or issue a refund.

How to Apply a Customer Credit to an Invoice

Recording and applying customer overpayments ensures accurate tracking of excess payments, reflects the correct amount owed by or to the customer, and keeps your accounts receivable and liabilities properly balanced.

How to Receive and Bookkeep a Customer Tip

Receiving and recording tips separately ensures accurate income tracking by distinguishing tip amounts from regular sales in your bookkeeping.

View and Understand your VAT Returns Report

The VAT Returns report helps you track the VAT collected on sales and the VAT paid on purchases, providing a clear picture of what your business owes to (or can reclaim from) the Cyprus Tax Department.

View and Understand your Balance Sheet

A balance sheet provides an overview of your business's assets, liabilities, and equity, to provide a tool for assessing your company's worth at a specific moment in time.

View and Understand your Profit & Loss Statement

The profit & loss statement, or Income statement, shows the money earned and spent over a specific period, providing a look into business profitability.

View and Understand your Trial Balance

The Trial Balance report lists all your business’s general ledger account balances as of a specific date. It is used to ensure that your total debits equal your total credits, helping verify that your books are balanced and accurate.

View and Understand your General Ledger

The General Ledger report provides a detailed record of all transactions posted to each of your general ledger accounts. It shows the full history of debits and credits for each account over a selected period, making it essential for auditing and accurate financial analysis.

Understand your Reports Page

The Reports section in Balabook provides essential insights into your business’s financial performance and supports compliance with accounting and tax obligations.

How to Generate Reports with Balabook

With Balabooks, you can easily generate multi-period financial reports such as General Ledger , Balance Sheets, Profit & Loss Statements,Trial Balance and VAT Returns Reports directly from your accounting data.

How to Resolve Differences Between your Balabook Balances and Bank Balances

Reconciliation refers to the process of matching your recorded transactions (such as expenses, income, and transfers) with your actual bank or credit card statements to ensure they align.

How to Reconcile Your Books

Reconciliation refers to the process of matching your recorded transactions (such as expenses, income, and transfers) with your actual bank or credit card statements to ensure they align.

How to Account for Reimbursements

When someone makes a purchase for your business using their personal funds, your business has received a short-term loan from that person. This means the money you owe them is a reimbursement.

How to Provide a Customer Receipt Before Payment is Recorded

To send a receipt for an invoice, the invoice must be marked as paid. Since you have not yet received any funds, you need an account to keep track of the undeposited funds.

How to Account for Donations

Before creating journal entries, you need the correct accounts in your Chart of Accounts.

How to Account for a Loan with Journal Entries

Setting up a loan account and recording loan transactions helps track the amount received, repayments, and interest accurately, ensuring your liabilities and expenses are correctly reflected in your books.

How to Account for Loans and Lines of Credit

Recording a loan or line of credit ensures accurate tracking of borrowed funds, repayments, and interest, helping maintain clear financial records and proper liability management.

How to Record Personal Transactions from a Business Account

Use a journal entry to record a personal purchase used in the business, ensuring the asset and owner's contribution are properly reflected in your accounts.

How to Record a Payment on a Foreign Currency Invoice or Bill

To record a foreign currency payment, go to the invoice or bill through the Sales or Purchases menu, click "Record a payment," and fill in the payment details before saving.

How to Account for Subscriptions

If you have a recurring expense, like a subscription that you pay for every month, you can keep track of it in Balabook. Balabook does not currently have a feature that can automate recurring expenses. However, you can keep track of these expenses by categorizing the transactions to an existing expense account, or a custom expense account.

How to Enter a New Expense

An expense transaction is a record of money spent by your business on goods or services. This can include purchases such as office supplies, utilities, travel, or any other operational costs.

Accounting Year-End Checklist Before Audit

If you have any additional questions or need more detailed and specific information, please contact your accountant or bookkeeping service provider.

How Foreign Currency Transactions are Recorded

Both the foreign currency amount and its equivalent in your base currency will be recorded and saved. The system automatically captures and stores these values, and the exchange rate used for the conversion will be clearly displayed in the transaction details.

How to Record Depreciation

When you purchase a capital asset , instead of recording all of the cost as an expense when you buy it, the expense of owning it is spread out over its expected useful life. This is called depreciation.

How to Record a Capital Asset Purchase

A capital asset is something that your business owns that can be used to generate revenue. For example, furniture, machinery, vehicles and buildings.

Starting Balances: What They Are, and How to Enter Them in Balabook.

A starting balance is the amount of funds in an account at the beginning of a new fiscal period. It allows you to see the balance of the account without entering the full transaction history.

How to Record a Journal Entry

A journal entry is used to record business activity that doesn't involve money actually changing hands, such as accruals, adjustments, or internal transfers. It can only be entered in your business’s base currency.

Difference Between Business, Account, and Transaction Currency