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Plain-English explanations of the accounting terms and workflows you'll bump into in KeepMyLedger. Search for a word or skim by section.

How-to guides

Short walkthroughs for the most common first-time tasks.

Import your first bank statement

Get transactions into KeepMyLedger from a PDF, CSV, or QIF file.

Add each bank/credit card account you use for business under Banking → Accounts. Then go to Banking → Import, pick the account, and upload a file (PDF statement, CSV export, or QIF).

For CSV, KeepMyLedger asks you to map columns (date, amount, description) the first time. That mapping is remembered per account so future imports are one click.

Duplicate transactions from repeat imports are detected by a hash of (date, amount, description) — you can re-upload the same file safely.

Categorize transactions (and let rules do it for you)

The three ways categories get assigned: manually, by rule, by AI.

Every transaction needs a category so your reports and tax export make sense. You have three options:

  • Manual: click the category on the Transactions page.
  • Rules: Setup → Rules. "Anything containing AWS goes to Software" runs automatically on every import.
  • AI Assist: on any transaction row, click the sparkle icon for a category suggestion. Free tier has a limited pool; paid tier is 100/day.

Start manual, and when you see a pattern (same vendor keeps showing up), use the "Create rule from this" shortcut to turn it into a rule.

Reconcile an account each month

Confirm your books match your bank statement.

Every month, go to Banking → Reconcile, pick the account, and enter the ending balance from your bank statement. KeepMyLedger lists every transaction in the period and lets you tick them off against the statement.

If your book balance and bank balance match after ticking everything, you're reconciled — save it. If not, one of these is usually the cause: a duplicate transaction, a missing transaction, or a typo in the amount.

Reconciling monthly catches problems while they're still small.

Send your first invoice

Add a customer, draft an invoice, email it as a PDF.

Add the customer under Sales → Customers. Then Sales → Invoices → New. Pick the customer, add one or more lines (description, quantity, unit price), and set the due date.

Save as draft or issue it. Issuing an invoice posts the amount to Accounts Receivable and generates a PDF you can download or email directly to the customer.

When the customer pays, record the payment on the invoice — this clears the receivable and posts the deposit.

Close a fiscal year

Finalize the year so this year's profit rolls into retained earnings.

At year-end (after your accountant has reviewed if applicable), go to Reports → Year-end closing. KeepMyLedger shows a preview: net income for the year and the closing entries it will post.

Reviewing the preview is important — once you close, this year's P&L rolls into retained earnings and the P&L resets to zero for the new year. Closed periods are locked, so no accidental edits.

You can re-open a closed period from Settings if you need to make a correction, but treat that as an exception.

Accounting basics

The vocabulary that shows up everywhere else.

Ledger account

A bucket in your books where money is tracked — for example "Cash", "Office Supplies", or "Sales Revenue". Every dollar you record goes into some ledger account.

Chart of accounts

The full list of your ledger accounts, grouped by type (assets, liabilities, equity, income, expenses). Think of it as the outline of everywhere money can sit in your business.

Journal entry

A single event in your books that moves money between two or more ledger accounts. For example, receiving a $500 payment creates a journal entry: Cash goes up by $500, Accounts Receivable goes down by $500.

Double-entry accounting

Every transaction affects at least two accounts, and total debits always equal total credits. This is the discipline that makes it possible to spot mistakes: if the two sides don't balance, something is wrong.

Debit

One side of every journal entry. Debits INCREASE assets and expenses; they DECREASE liabilities, equity, and income. You almost never need to think about this directly — the app handles it when you categorize a transaction.

Credit

The other side of every journal entry. Credits DECREASE assets and expenses; they INCREASE liabilities, equity, and income. The app handles debits and credits automatically when you record something normally.

Categorization

Assigning each transaction to a category (Office Supplies, Travel, Sales Revenue, etc). Categories drive your reports and tax exports.

Cash vs. accrual

How and when transactions hit your books.

Cash basis

Income and expenses are recorded only when cash actually changes hands. Simpler; often used by very small businesses and individuals. Doesn't show what you're owed or what you owe until money moves.

Accrual basis

Income and expenses are recorded when they're earned or owed — even if the cash hasn't moved yet. When you send an invoice, that revenue counts today, not when the customer eventually pays. Standard for anyone using invoices or bills.

Reports

What each report tells you, in plain English.

Trial balance

A quick snapshot showing every ledger account and its running total. It's a health check: the sum of all debit balances should equal the sum of all credit balances. If it does, your books are internally consistent.

Balance sheet

A financial photograph on a specific date, showing what you own (assets), what you owe (liabilities), and the difference (equity). The identity Assets = Liabilities + Equity must always hold.

Profit & Loss (P&L)

Also called an income statement. Summarizes revenue minus expenses over a period (month, quarter, year) to show whether you made or lost money.

Equity & year-end

What "equity" means and what happens at year-end.

Owner's equity

The portion of your business that belongs to you (the owner) after subtracting what you owe from what you own. For personal finance it's just called "Net Worth".

Retained earnings

The cumulative profit your business has kept over its lifetime (as opposed to distributing it). At year-end, this year's net income rolls into retained earnings.

Year-end close

The process of finalizing a fiscal year: profit and loss get rolled into retained earnings, and the P&L resets to zero for the new year. Should be done once per year, typically after your accountant reviews.

Sales & receivables

Invoicing customers and tracking what they owe.

Invoice

A formal request for payment sent to a customer. Records what you sold, at what price, when it's due. Issuing an invoice adds the amount to Accounts Receivable.

Accounts Receivable (A/R)

Money customers owe you that you haven't collected yet. When you issue an invoice, the amount goes into A/R until the customer pays.

Bills & payables

Vendor bills and what you owe.

Bill

A formal request for payment RECEIVED from a vendor — something you owe them. Entering a bill adds the amount to Accounts Payable so you can track what you owe and when.

Accounts Payable (A/P)

Money you owe vendors or suppliers that you haven't paid yet. When you enter a bill, the amount goes into A/P until you pay it.

Sales tax

Collecting and remitting sales tax.

Sales Tax Payable

Sales tax you've collected from customers but haven't remitted to the state yet. It's money you're holding on behalf of the government — not revenue.

Tax rate

A named sales-tax percentage tied to a jurisdiction (e.g. "NY 8.875%"). Applied per invoice line so different items on the same invoice can be taxed differently or exempt.

Jurisdiction

The taxing authority a rate belongs to (a state, county, or city). The sales-tax report groups collections by jurisdiction so you know how much to remit to each one.

Remittance

A payment sent to a taxing authority for sales tax you collected. Recording it clears the corresponding amount out of Sales Tax Payable.

Fixed assets & depreciation

Long-lived purchases and how they hit your books over time.

Fixed asset

A long-lived item you own for use in the business — computers, vehicles, equipment, furniture. Unlike office supplies (expensed immediately), fixed assets are recorded at cost and expensed gradually via depreciation.

Depreciation

The gradual expensing of a fixed asset over its useful life. A $3,000 laptop with a 3-year life depreciates $1,000 per year rather than showing as a $3,000 expense on day one.

Banking & transactions

The everyday flow of transactions from your bank.

Reconcile

Matching your recorded transactions to your bank statement for a period, confirming that every deposit and withdrawal in your books actually happened at the bank. Do this monthly — it catches typos, duplicates, and (rarely) fraud.

Transfer

Moving money between two accounts you own — for example, from checking to savings. Transfers don't affect income or expenses; they're just money changing location.

Taxes & entity

Concepts for tax time and business structure.

Tax export code

A short label attached to a category that groups similar spending on your tax export (e.g. "MEALS", "OFFICE"). Makes handoff to your accountant or tax software simpler.

1099

A tax form you file for each independent contractor you paid $600 or more in a year. The Vendors page flags contractors nearing this threshold.

Mileage deduction

Business miles driven can be deducted at the IRS standard rate. Track them in the Mileage log — the app applies the correct year's rate when computing the deduction.

Entity type

Your legal business form (Sole Proprietorship, LLC, or S-Corp). Governs the names of your equity accounts on the chart. If unsure, sole prop is the default and can be changed later.

Personal mode

Marks a business as personal-finance use. Hides Invoices, Bills, Vendors, Customers, and Tax rates from the menu — none of those apply when you're just tracking your own money.