Accounting
Accounting Overview
Alfasente ERP does your bookkeeping for you. Every sale, purchase, payment, and payroll run is recorded in a full double-entry general ledger behind the scenes — so your books stay up to date without you having to enter anything by hand.
You don't need to be an accountant to use it. This page explains the few ideas that make everything else make sense.
Your books are always up to date
Whenever money moves in your business, the ERP writes the matching accounting records automatically. A cash sale, a supplier payment, a staff salary — each one is turned into a balanced set of ledger entries the moment it happens. There is no month-end catch-up and no manual posting for everyday activity.
Because posting is automatic, your reports are always live and correct.
The chart of accounts
The chart of accounts is simply the list of "buckets" your money is organised into. Each account has:
- A code — a short number like
1-01-001that keeps accounts in a tidy, predictable order. - A type — one of five categories that describes what the account is:
| Type | What it means | Everyday examples |
|---|---|---|
| Asset | Things your business owns or is owed | Cash, bank balance, money customers owe you |
| Liability | Money your business owes | Suppliers to pay, VAT you'll remit |
| Equity | The owner's stake in the business | Owner's capital |
| Revenue | Money you earn | Sales |
| Expense | The cost of running the business | Cost of goods sold |
When you sign up, a Uganda-ready chart of accounts is created for you, so you can start trading immediately. You can always add your own accounts later if you need finer detail.
Some accounts you'll see:
| Account | Code | Type |
|---|---|---|
| Cash in Hand | 1-01-001 | Asset |
| Cash at Bank | 1-01-002 | Asset |
| Mobile Money Clearing | 1-01-004 | Asset |
| Trade Debtors / Receivables | 1-02-001 | Asset |
| Trade Creditors / Payables | 2-01-001 | Liability |
| VAT Payable | — | Liability |
| Sales Revenue | 4-01-001 | Revenue |
| Other Income | 4-02-001 | Revenue |
| Cost of Goods Sold | 5-01-001 | Expense |
Double-entry, explained simply
Every transaction touches at least two accounts, and the two sides always balance: total debits equal total credits. That's the rule that keeps your books honest — if the two sides don't match, something is missing.
Think of it as "where the money came from" and "where the money went". A cash sale increases your cash and records the income that caused it.
Here's how one cash sale flows into the ledger:
In words: the sale debits Cash and credits Sales Revenue (plus VAT Payable for the tax portion). At the same time, the cost side debits Cost of Goods Sold and credits Inventory, because you've handed over stock. You do none of this manually — the ERP posts it for you.
Mobile Money Clearing
Mobile money is a big part of doing business in Uganda, so the ERP gives it a dedicated holding account: Mobile Money Clearing (1-01-004). All mobile-money flows pass through this account, which keeps your physical cash and your mobile money tracked cleanly and separately, rather than mixed together.
Where to go next
- Journals — how entries are posted, and how to record a manual adjustment.
- Reports — the Trial Balance and account ledgers.
- Periods — closing and locking finished months.
Last updated 2026-08-11