-
Notifications
You must be signed in to change notification settings - Fork 4
Commit
This commit does not belong to any branch on this repository, and may belong to a fork outside of the repository.
docs: add accounting intro pages (#125)
- Loading branch information
Showing
13 changed files
with
128 additions
and
31 deletions.
There are no files selected for viewing
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
Original file line number | Diff line number | Diff line change |
---|---|---|
@@ -0,0 +1,9 @@ | ||
--- | ||
id: accounting-intro | ||
title: Accounting Intro | ||
slug: /accounting/intro | ||
--- | ||
|
||
# Introduction to Accounting in Cala | ||
|
||
Welcome to the introduction to accounting with Cala! This guide is designed to help developers understand the essential accounting terms and concepts used in the Cala product. By the end of this section, you'll have a solid foundation to start building banking software with Cala. |
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
Original file line number | Diff line number | Diff line change |
---|---|---|
@@ -0,0 +1,20 @@ | ||
--- | ||
id: double-entry-accounting | ||
title: Double-Entry Accounting | ||
slug: /accounting/double-entry-accounting | ||
--- | ||
|
||
### What is Double-Entry Accounting? | ||
Double-entry accounting is a bookkeeping system that requires every financial transaction to be recorded in at least two accounts: one account will be debited and another will be credited. This system ensures that the accounting equation (Assets = Liabilities + Equity) always remains balanced, providing a more accurate picture of a company's financial health. | ||
|
||
### How It Works | ||
For each transaction: | ||
- **Debits** must equal **credits**. | ||
- Each transaction affects at least two accounts to keep the equation balanced. | ||
- For example, if a company takes out a loan, it will debit its cash account (an asset) and credit a loans payable account (a liability). | ||
|
||
### Importance of Double-Entry Accounting | ||
- **Accuracy**: Reduces errors by ensuring that debits and credits are always balanced. | ||
- **Comprehensive Records**: Provides a complete record of financial transactions, making it easier to track financial performance. | ||
- **Regulatory Compliance**: Meets the standards required by regulatory bodies and provides transparency. | ||
- **Financial Health**: Helps in understanding the financial position of a business by providing detailed information on assets, liabilities, and equity. |
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
Original file line number | Diff line number | Diff line change |
---|---|---|
@@ -0,0 +1,31 @@ | ||
--- | ||
id: glossary | ||
title: Glossary of Terms | ||
slug: /accounting/glossary | ||
--- | ||
|
||
## Account | ||
An account is a record in the general ledger that tracks financial transactions. Accounts are categorized as assets, liabilities, equity, revenues, or expenses. In Cala, each account has a unique identifier (`accountId`). | ||
|
||
## Journal | ||
A journal is a chronological record of all financial transactions. Each journal entry includes the date, accounts affected, and the amounts debited or credited. In Cala, each journal has a unique identifier (`journalId`). | ||
|
||
## Transaction | ||
A transaction is a financial event that affects the accounts in the general ledger. Transactions are recorded in journals and typically involve debits and credits to different accounts. | ||
|
||
## Debit and Credit | ||
These are the two sides of every financial transaction: | ||
- **Debit**: An entry on the left side of an account ledger that increases asset or expense accounts and decreases liability, equity, or revenue accounts. | ||
- **Credit**: An entry on the right side of an account ledger that increases liability, equity, or revenue accounts and decreases asset or expense accounts. | ||
|
||
## Balance | ||
The balance of an account is the difference between the total debits and total credits recorded in that account. It indicates the current amount available or owed. | ||
|
||
## Currency | ||
Currency represents the type of money being used in transactions, such as USD (United States Dollar). | ||
|
||
## Transaction Template | ||
A transaction template is a predefined structure for a specific type of transaction, such as deposits or withdrawals. It ensures consistency and accuracy in recurring transactions by specifying the required parameters and transaction details. | ||
|
||
## UUID (Universally Unique Identifier) | ||
A UUID is a 128-bit number used to uniquely identify information in computer systems. In Cala, it is used to uniquely identify accounts, journals, and transactions. |
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
Original file line number | Diff line number | Diff line change |
---|---|---|
@@ -0,0 +1,15 @@ | ||
--- | ||
id: step-by-step | ||
title: Accounting with Cala Step-by-Step | ||
slug: /docs/step-by-step | ||
--- | ||
|
||
1. [**Create Journals and Accounts**](/docs/create-journal-and-accounts): Start by setting up journals and accounts. Journals will hold the records of all transactions, and accounts will be used to categorize these transactions. | ||
|
||
2. [**Define Transaction Templates**](/docs/tx-template-create): Create templates for common transactions like deposits and withdrawals. This ensures that each transaction follows a consistent structure. | ||
|
||
3. [**Post Transactions**](/docs/post-transaction): Use the transaction templates to post transactions. This involves specifying the necessary parameters and ensuring that the correct accounts are debited or credited. | ||
|
||
4. [**Check Account Balances**](/docs/check-account-balance): Regularly query the balances of accounts to monitor the financial status. This helps in maintaining accurate and up-to-date financial records. | ||
|
||
By following these steps and understanding the glossary of terms, you'll be well-equipped to use Cala to build robust banking software. This structured approach ensures that your financial transactions are accurate, consistent, and compliant with accounting standards. |
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
File renamed without changes