Two modes, chosen automatically
Every accounting report in TaxItEasy — chart of accounts, profit & loss, general ledger, trial balance, balance sheet — is built from a virtual double-entry ledger computed at report time from the client's invoices and bank transactions. Which kind of report you get depends on whether the client company has an advisor-maintained chart of accounts:
- Derived mode (the default) — categories resolve to the per-country standard chart plus system accounts. Reports are honest working drafts: every sheet carries a draft disclaimer, and the balance-sheet view is deliberately labeled a "Draft Summary" of financial position — never presented as a statutory balance sheet.
- Ledger mode — once the company has its own chart, categories resolve through your account mappings, and the ledger is augmented with your opening balances and posted manual journals. The result is a statutory-grade trial balance and a vertical balance sheet where net assets equal shareholder funds (including profit for the year).
No setting to flip: the same report download upgrades automatically the moment a chart exists.
The building blocks
Chart of accounts — seeded, not typed in
The chart starts from a country template — for Cyprus, a full chart of 100+ accounts. Seeding is idempotent and never overwrites your edits: re-seeding fills gaps, it doesn't reset your work. From there you can add, rename, and retire accounts.
Category-to-account mapping
TaxItEasy's day-to-day bookkeeping runs on categories; your statutory reporting runs on account codes. The mapping layer connects the two — each category resolves to one of your ledger accounts, and anything you haven't mapped yet falls back to the derived resolution rather than disappearing. Map once, and every categorized invoice and transaction flows to the right account from then on.
Opening balances
Opening balances are entered per account for the fiscal year, so a client who migrates mid-history starts from correct positions instead of movement-from-nil. With openings in place, the balance sheet reflects real positions, not just the period's movements.
Manual journal entries — locked once posted
For everything the automated bookkeeping can't express — accruals, depreciation, corrections — you post manual journals. Two rules keep them trustworthy:
- A journal must balance to be created. Debits equal credits, always — an unbalanced entry is rejected, not saved for later.
- Posted journals are locked. Once posted, a journal can't be edited or deleted; it's part of the record. Only unposted drafts can be deleted. This is what makes the ledger audit-proof: the trail of what was booked, when, and by whom cannot be quietly rewritten.
What the engine guarantees
The posting engine enforces double-entry discipline throughout: total debits always equal total credits, the trial balance asserts it on every build (a mismatch produces a visible diagnostics row, never a silent shrug), and unmatched bank transactions land in a suspense account rather than being guessed into a P&L line. Net amounts go into profit & loss — never gross — and VAT flows to its control accounts. Reports can be built on an accrual or cash basis.
Where you'll use it
The reports themselves are delivered through the client's Reports tab as a single multi-sheet XLSX — see accounting reports as XLSX — and the same five reports ship as CSVs inside the full company-data export. Managing the ledger objects (accounts, mappings, opening balances, journals) is currently handled through the advisor API; dedicated in-app screens for ledger maintenance haven't shipped yet.
A note on expectations: the ledger layer makes the trial balance and balance sheet structurally sound, but it doesn't replace professional judgment. Treat the output as a strong working paper for statutory preparation — verifying completeness and making the final call on presentation remains your job, which is why derived-mode output stays clearly labeled as a draft.
Related
- Accounting reports as XLSX — the 5-sheet report download this feeds
- Period checklist and VAT return prep — getting the underlying data complete first
- Booking transactions for your clients — the category layer the mapping builds on