Getting Started with Frappe Books

Let’s start applying what we have learned so far by setting up your company in Frappe Books.

If you have not downloaded Frappe Books, this is a good time to do that. Simply visit frappebooks.com and click on Download.

Company Setup

When you open Frappe Books, you’ll be presented two options: New File and Existing File. If this is the first time you are opening Frappe Books, click on New File.

Now select an appropriate location where you want to store the file and give it a name. Usually, you would want to give the name of your company.

Setup Screen

Frappe Books stores all your company data and transactions on a local file on your computer.

Setup Screen

Now, enter your Business Name, Business Email and Country Information. This will help set up the correct Chart of Accounts based on your country.

Congratulations! You now have a company set up on Frappe Books. You can now start recording your invoices and transactions.

Let’s go over some simple setup steps to get you ready.

1. Enter bank accounts

Head over to Chart of Accounts page, by clicking on Setup > Chart of Accounts from the sidebar. Click Assets > Current Assets > Bank Accounts.

Add any bank accounts your business has apart from the one already added.

Chart of Accounts

2. Add Taxes

If your company charges or will recover Sales Taxes, add any taxes that you will use. To access Taxes, go to Setup > Taxes.

  1. To add a Tax, enter a name which will make it easier to identify. You can also mention the rate in the name. For e.g. Service Tax - 5%.

  2. Select the Tax Account and enter the Rate. You can add multiple rows with different Tax Accounts. This will make it easier to apply a set of Taxes which are frequently applied together on an Item. You can even create different taxes for different Items or a class of Items.

Taxes

3. Add Items

One of the most important things you will add in Books are your products or services that you provide to your customers. To access Items, go to Sales > Items.

  1. Click on the blue plus button.
  2. Enter the Name and Rate.
  3. Select if your Item is a Product or Service. Setting the default Tax for your Item will fetch it automatically when you create an Invoice.

Items

4. Add Customers

Add your customers to record their details and select them in Invoices. You can also import your customers in bulk if you have them in an Excel sheet.

To access Customers, go to Sales > Customers.

Customers

5. Setup Opening Balances

If you are moving from an existing accounting system over to Frappe Books, you will need to enter the account balances from your previous system.

Here are the steps to do that:

  1. Get the starting balances from your previous accounting system in the form of Trial Balances report.
  2. Add any accounts from your previous system that do not exist in Frappe Books by goint to Setup > Chart of Accounts.
  3. Now go to Sales > Journal Entry and click on the blue plus button, a journal entry form will open.
  4. Now, add a row for each line from your Trial Balances report, select the appropriate Account and the Debit or Credit amount.
  5. After you are done, click on Save. Review it once before clicking on Submit.

This will create a Journal Transaction in the system with all your previous statements. This brings your books to the same position that was present in your previous accounting system.