PayNTrack Help Guide

Accounting explained simply

Practical explanations for the fields you use when recording business activity.

Expense category

The type of cost your business paid for.

Example: Fuel for a delivery vehicle can be recorded in Vehicle or Fuel Expense.

Accounting record: The category is debited and the cash or bank account is credited.

Common mistake: Do not use an asset account for normal daily costs. Keep categories consistent for useful reports.

The cash, bank, card, or wallet account that supplied the money.

Example: If you paid with office cash, choose Petty Cash.

Accounting record: The selected money account is credited because its balance decreases.

Common mistake: Choose the actual payment source, not the vendor or expense category.

The cash or bank account where the business received money.

Example: Choose Meezan Bank when a customer pays into that account.

Accounting record: The selected money account is debited because its balance increases.

Common mistake: Do not choose an income category here. Select where the money actually arrived.

The business activity that earned the money.

Example: A website project can be recorded as Service Income.

Accounting record: The income category is credited and the receiving account is debited.

Common mistake: A loan received is not income. Use Loan Received for borrowed money.

Money your business owes to a lender.

Example: Create Loan Payable - Ahmed when Ahmed lends the business PKR 100,000.

Accounting record: Cash or bank is debited and the loan payable account is credited.

Common mistake: Do not record borrowed money as sales or other income.

Money another person or business must repay to your business.

Example: Create Loan Receivable - Ali when the business lends Ali PKR 20,000.

Accounting record: Loan receivable is debited and cash or bank is credited.

Common mistake: A loan given is an asset, not an expense.

The two equal sides of every accounting entry.

Example: Paying rent debits Rent Expense and credits Bank.

Accounting record: Every posted journal must have equal total debits and credits.

Common mistake: Debit does not always mean increase; the effect depends on the account type.

The account balance on the date you start using PayNTrack.

Example: If the bank held PKR 50,000 on your start date, enter that as its opening balance.

Accounting record: Opening balances establish the starting position before new activity.

Common mistake: Do not include transactions that will also be imported or entered later.

A bank or service charge paid while moving money between your own accounts.

Example: Moving PKR 10,000 with a PKR 50 bank fee records PKR 50 as Bank Charges.

Accounting record: The destination increases by the transfer amount; the source decreases by transfer plus fee; fee expense is debited.

Common mistake: The transferred amount is not income or expense. Only the fee is an expense.