Chart of Accounts

Every sale, expense, purchase and payroll run you record is translated into double-entry bookkeeping against a fixed list of accounts. That list is the chart of accounts, and this page is it.

You do not have to set any of this up. There is no chart-of-accounts screen, no opening wizard, and no accounts to create — the chart ships with Kassly and is the same for every store.

How the chart works

Account codes follow the Philippine small-business convention:

Range	Kind of account
1xxx	Assets
2xxx	Liabilities
3xxx	Equity
4xxx	Revenue — with 49xx for contra-revenue
5xxx	Expenses

Each account also has a normal side, debit or credit. That is the side a healthy balance sits on, and it is what decides which column an account lands in on the Trial Balance. Assets and expenses are debit-normal; liabilities, equity and revenue are credit-normal.

The accounts

Assets — debit-normal

Code	Account	What lands here
1010	Cash on Hand	Every cash tender, cash refund, drawer top-up and payout. All non-credit tenders — GCash, card, bank transfer — are also treated as Cash on Hand
1020	Cash in Bank	Cheque clearing and cheque-bounce reversals
1100	Accounts Receivable - Trade	The credit-tendered portion of a charge sale, relieved when the customer pays
1150	Employee Loans Receivable	Staff cash advances outstanding, relieved by repayment or payroll deduction
1200	Merchandise Inventory	Stock capitalised when a purchase order is received, relieved as cost of goods sold at each sale
1300	Input VAT (Creditable)	Nothing today — see the limits below

Liabilities — credit-normal

Code	Account	What lands here
2010	Accounts Payable - Trade	Owed to suppliers for received purchase orders, and third-party amounts withheld from staff pay
2100	Output VAT Payable	The 12% VAT on your vatable sales
2200	Commissions & Tips Payable	Staff commissions and tips accrued at the sale, relieved when the payout is settled
2300	Service Charge Payable	Service charge collected from customers
2400	Salaries & Wages Payable	Net pay accrued when a payroll run is posted, relieved when it is paid
2410	Statutory Contributions Payable	SSS, PhilHealth and Pag-IBIG withheld and accrued, pending remittance
2420	Withholding Tax Payable	Compensation withholding tax on payroll
2430	Loans Payable	Business loans outstanding

Service charge is a liability, not your income. Under RA 11360 the whole service charge belongs to covered employees, so Kassly credits Service Charge Payable at the sale and never shows it as revenue. It does not appear on your income statement at all.

Equity — credit-normal

Code	Account	What lands here
3000	Owner's Equity	Cash In, opening floats, Cash Out withdrawals, and the clearing leg of a drawer-funded expense

Revenue — credit-normal

Code	Account	What lands here
4010	Sales - Vatable	Sales carrying 12% VAT, shown net of the VAT itself
4020	Sales - VAT-Exempt	VAT-exempt sales, including senior citizen and PWD sales
4030	Sales - Zero-Rated	Zero-rated sales
4200	Other Income	Non-operating income — cheque bounce fees today

Account 4100 Service Charges still exists in the chart so that older entries referencing it resolve, but nothing posts to it any more. Treat it as retired.

Contra-revenue — debit-normal

Contra-revenue accounts reduce revenue without reducing the gross sales figure. That matters for BIR presentation: the books show gross sales, then the deductions against them, rather than quietly netted-down sales.

Code	Account	What lands here
4910	Sales Discounts	Every discount granted, including senior citizen and PWD discounts
4920	Sales Returns and Allowances	Returns and refunds
4930	Voided Sales	The sales value of voided receipts

A senior citizen or PWD sale shows twice, on purpose. The gross amount goes to 4020 Sales - VAT-Exempt and the discount goes to 4910 Sales Discounts. That is the presentation the BIR expects, and it is why exempt sales in your books look higher than what you actually collected. See Discounts.

Expenses — debit-normal

Code	Account	What lands here
5010	Cost of Goods Sold	The cost of what you sold, taken from the cost snapshot captured on each line at the moment of sale
5100	Operating Expenses	Every approved expense that is not a supplier payment or a loan repayment
5200	Commission Expense	Staff commissions accrued
5210	Tips Expense	Tips accrued
5300	Cash Over/Short	Counted drawer variance at shift close. Shortages debit it; overages credit it
5310	Statutory Contributions Expense (Employer Share)	Your share of SSS, PhilHealth and Pag-IBIG
5320	Salaries & Wages Expense	Gross compensation for a posted payroll run
5330	Interest Expense	The interest portion of a business loan repayment

What creates an entry

Kassly does not have a screen where you type journal entries. Every entry comes from something you already did somewhere else in the system.

What you did	Entry
Cash sale	Debit Cash on Hand · credit Sales and Output VAT · debit Sales Discounts if discounted · credit Service Charge Payable if charged · debit COGS and credit Inventory
Charge sale	The same, except the credit-tendered part debits Accounts Receivable. On a split tender, only the credit part is a receivable
Void	A mirror entry dated at the void, with the sales side routed to 4930 Voided Sales
Return or refund	Debit Sales Returns and reverse the Output VAT · credit cash, bank or the customer's tab depending on the refund method. Restocked items reverse the COGS pair
Customer pays down credit	Debit Cash on Hand · credit Accounts Receivable
Opening float	Debit Cash on Hand · credit Owner's Equity
Cash In	Depends on what you said it was — see below
Cash Out	Debit Owner's Equity · credit Cash on Hand. Approving a linked expense then reclassifies the equity leg into Operating Expenses, so an approved drawer expense nets out as debit Operating Expenses, credit Cash on Hand
Approved expense	Debit Operating Expenses · credit Cash on Hand
Purchase order received	Debit Merchandise Inventory · credit Accounts Payable
Supplier paid for that order	Debit Accounts Payable · credit Cash on Hand
Payroll run posted	Debit wages and employer contributions · credit each deduction and net pay
Payroll run paid	Debit Salaries & Wages Payable · credit Cash on Hand
Shift closed with a variance	Debit or credit Cash Over/Short against Cash on Hand

Why Cash In asks where the money came from

When you record a Cash In, Kassly asks you to classify it, and the answer changes the entry. Getting this right is the difference between a loan showing as a debt and a loan showing as your own capital.

You picked	Entry
Owner's Capital	Debit Cash on Hand · credit Owner's Equity
Loan Proceeds	Nothing here. The loan record books it as debit Cash on Hand · credit Loans Payable
Transfer from Safe / Bank	Nothing at all. Moving your own cash between your own tills leaves the business no richer
Other, or left unanswered	Debit Cash on Hand · credit Owner's Equity

Cash In that is really a loan, or really a transfer from the safe, must be classified. Left as Other it is booked as owner's capital, which understates what you owe and overstates what you have put in. Older Cash In records from before this question existed are all treated as capital, and Kassly does not reinterpret them — reclassifying them would silently restate every trial balance you have already printed.

Three things deliberately create no entry:

• Pending and held sales. Nothing is an accounting event until it completes.
• Stock adjustments, counts and transfers. These move stock around without changing what the business owns, so they never reach the ledger. Only a sale or a received purchase order does.
• Unapproved expenses. An expense sits outside the books until it is approved. If the cash already left the drawer, that shows as a withdrawal against Owner's Equity, and approval reclassifies it into Operating Expenses.

Adding your own accounts

You cannot. The chart is fixed across the whole of Kassly, and there is no way — through the interface or otherwise — to add, rename, renumber or delete an account.

What you can do instead is use expense categories. Every approved expense posts to 5100 Operating Expenses no matter what, but the category name is written into the entry's memo, so it appears next to the amount in the General Journal and General Ledger. If your accountant wants rent separated from utilities, categories are the tool, not accounts.

If your accountant needs a different chart, export the books as CSV and let them map the codes to their own. Every book on the Books of Accounts page downloads as CSV with the account code and name on every row, which is what makes remapping possible.

Limits worth knowing before you rely on this

Say these out loud to your accountant before they build anything on top of the figures.

Limit	What it means
Input VAT is not booked	1300 Input VAT is in the chart but nothing posts to it. A received purchase order is capitalised to inventory at its full value, VAT included. Your input VAT credit has to be worked out from your supplier invoices, not from Kassly's books
All non-cash tenders are Cash on Hand	GCash, Maya, card and bank transfer all post to 1010, not to separate clearing accounts. Use the payment breakdown on a shift or a Z reading to split them
Service charge distribution is not tracked	2300 Service Charge Payable accumulates but is never relieved by Kassly, so the balance grows. Paying it out is recorded as an ordinary expense or a drawer payout
Statutory remittance is an ordinary expense	Paying SSS, PhilHealth, Pag-IBIG or withholding tax posts to 5100 Operating Expenses and does not relieve 2410 or 2420
Only counted drawers post a variance	A shift closed without anyone counting the drawer posts nothing to 5300 — the variance is unknown, not zero. See Cash over and short
There is no opening-balance entry	Kassly's books start from your first recorded transaction. Stock, cash and debts that existed before you started are not in there unless you recorded them as Kassly transactions

That last one catches people out. If you opened your store in 2023 and started using Kassly in 2026, the balance sheet is a picture of what Kassly has seen, not of your business.

Where to see it

The chart itself has no page. You see it in use on Sales → Books of Accounts, which is where the journal, ledger, trial balance and statements are. That menu item only appears once your store is marked BIR-accredited — see BIR compliance for what that means and how it is set.