Account Flags

Account flags are toggles you can set on individual accounts to control how they appear on reports, the dashboard, and in payment workflows. They’re found in the Advanced section when adding or editing an account.

Note

Template accounts come with flags pre-configured. You typically only need to set flags on custom accounts you create yourself.

All Flags

Payment Account

Visible on: Current Asset accounts

Marks an account as holding cash your business can spend — a bank account, cash register, or mobile money wallet (e.g., M-Pesa).

What it does:

• Includes the account in the Dashboard cash position widget
• Includes the account in Cash & Cash Equivalents on the Cash Flow Statement
• Makes the account available in payment dropdowns

Examples: Cash on Hand, KCB Bank Account, M-Pesa Float

Caution

If no accounts are flagged as Payment Account, the Cash Flow Statement will show zero beginning and ending cash. Make sure your cash and bank accounts have this flag enabled.

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Bank Account

Visible on: Current Asset accounts with Payment Account enabled

A subset of Payment Account that distinguishes formal bank accounts from cash drawers or mobile money.

What it does:

• Identifies the account as a formal bank account (as opposed to petty cash or M-Pesa)
• Supports future bank reconciliation workflows

Examples: KCB Operating Account, Equity Savings Account

Tip

Turning off Payment Account automatically clears Bank Account too — they’re nested.

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Cash Equivalent

Visible on: Current Asset accounts without Payment Account enabled

Short-term, highly liquid investments that are readily convertible to cash (maturity ≤ 3 months). Per IFRS for SMEs, these are grouped with cash on the Cash Flow Statement.

What it does:

• Groups the account with cash on the Cash Flow Statement summary
• Prevents the account from appearing as a working capital change (which would be incorrect)

Examples: Treasury Bills (91 days), Money Market Fund, Fixed Deposit (90 days)

Note

Payment Account and Cash Equivalent are mutually exclusive — an account is either operational cash or a cash equivalent, not both. Enabling one hides the other.

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Non-Cash Expense

Visible on: Expense accounts

Marks expenses that reduce profit on the Statement of Profit or Loss but don’t involve actual cash leaving the business.

What it does:

• Added back to operating cash flow on the Cash Flow Statement (under “Adjustments for Non-Cash Items”)
• Without this flag, depreciation would incorrectly reduce reported operating cash

Examples: Depreciation Expense, Amortization Expense, Impairment Loss

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Requires Reconciliation

Visible on: All account types

Flags accounts that should be periodically reconciled against external records (bank statements, vendor statements, etc.).

What it does:

• Marks the account for future reconciliation workflows
• Helpful as a reminder for which accounts need regular balance verification

Examples: Bank accounts, Accounts Receivable, Accounts Payable, VAT Payable

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Trust Account

Visible on: Current Asset accounts

For businesses that hold funds on behalf of clients — such as law firms, real estate agents, or escrow services.

What it does:

• Identifies the account as holding client trust funds (separate from your operating cash)
• Supports future trust accounting compliance workflows

Examples: Client Trust Account, Escrow Holding Account

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Trust Liability

Visible on: Current Liability accounts

The corresponding liability for funds held in trust. Represents what you owe back to clients whose money you’re holding.

What it does:

• Pairs with the Trust Account flag on the asset side
• Supports future trust accounting compliance workflows

Examples: Client Trust Liability, Escrow Payable

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Which Flags Affect Reports Today?

Flag	Active Effect
Payment Account	Cash Flow Statement, Dashboard cash position
Cash Equivalent	Cash Flow Statement
Non-Cash Expense	Cash Flow Statement
Requires Reconciliation	Visual indicator only (reconciliation feature coming soon)
Bank Account	Visual indicator only (bank reconciliation feature coming soon)
Trust Account	Visual indicator only (trust accounting feature coming soon)
Trust Liability	Visual indicator only (trust accounting feature coming soon)

Tip

Even flags without active effects today are worth setting correctly. When the features launch, your accounts will be ready — no retroactive cleanup needed.

Cascading Behavior

Some flags depend on each other:

Action	Auto-Effect
Turn off Payment Account	Bank Account is automatically cleared
Turn on Payment Account	Cash Equivalent option is hidden and cleared
Turn on Cash Equivalent	Only possible when Payment Account is off
Change account type or sub-category	Irrelevant flags are hidden and reset to off

Setting Flags on Existing Accounts

1. Open Chart of Accounts in the sidebar
2. Click the ⋮ menu on the account → Edit
3. Scroll to the Advanced section
4. Toggle the relevant flags
5. Click Confirm

For more on editing accounts, see Managing Accounts.