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Balances

Balances in Arthalekha represent how much money is in your accounts at any given time. Understanding how balances work is key to getting accurate financial tracking.

Types of Balances​

Arthalekha maintains two types of balance information:

1. Current Balance​

The current balance is the real-time, up-to-date balance of each account. It:

  • Updates automatically with every transaction
  • Shows exactly how much is in the account right now
  • Is displayed on account listings and dashboards

2. Historical Balances​

Historical balances are monthly snapshots showing what each account's balance was at the end of each month. They:

  • Are recorded automatically
  • Allow you to see balance trends over time
  • Enable historical reporting and analysis

How Balances Are Calculated​

The balance formula is:

Current Balance = Initial Balance
                + Total Incomes
                - Total Expenses
                + Transfers In
                - Transfers Out

Transaction Effects​

Transaction TypeEffect on Balance
IncomeIncreases the account balance
ExpenseDecreases the account balance
Transfer OutDecreases the source account balance
Transfer InIncreases the destination account balance

Initial Balance​

When you create an account, you specify:

  • Initial Date: When you start tracking the account
  • Initial Balance: The account balance on that date

This serves as the starting point for all balance calculations.

Example​

Account: HDFC Savings
Initial Date: January 1, 2024
Initial Balance: ₹50,000

January Transactions:
  + Income (Salary): ₹75,000
  - Expense (Rent): ₹20,000
  - Expense (Groceries): ₹5,000
  - Transfer Out (to Savings): ₹10,000

Balance at End of January:
  ₹50,000 + ₹75,000 - ₹20,000 - ₹5,000 - ₹10,000 = ₹90,000

Balance Updates​

Balances update automatically when you:

  1. Create a transaction - Balance adjusts immediately
  2. Edit a transaction - Old effect is reversed, new effect is applied
  3. Delete a transaction - Effect is reversed

You never need to manually calculate or update balances.

Monthly Balance Records​

At the end of each month, Arthalekha maintains a balance snapshot for each account. This enables:

Trend Analysis​

See how your balance has changed over months:

January:  ₹50,000
February: ₹65,000  (+₹15,000)
March:    ₹80,000  (+₹15,000)
April:    ₹72,000  (-₹8,000)

Historical Reporting​

Generate reports for any past period using the recorded balances.

Average Balance Calculation​

Calculate average balance over time for banking requirements or personal analysis.

Viewing Balances​

Account List​

The main accounts view shows each account with its current balance.

Account Details​

Individual account pages show:

  • Current balance
  • Recent transactions affecting the balance
  • Balance history

Dashboard​

The home dashboard shows:

  • Total balance across all accounts
  • Monthly income vs expense summary
  • Balance trends chart

Projected Balance​

The projected balance view shows:

  • Current balance
  • Expected future balance based on recurring transactions
  • Day-by-day projections

Balance Accuracy​

For accurate balances:

1. Set Correct Initial Values​

  • Check your actual account balance on the initial date
  • Enter it precisely as the initial balance
  • All future calculations depend on this starting point

2. Record All Transactions​

  • Log every income, expense, and transfer
  • Don't skip small transactions
  • Regular recording ensures accuracy

3. Reconcile Periodically​

  • Compare Arthalekha balance with actual account balance
  • If there's a discrepancy, look for missed transactions
  • Adjust if needed (create a correction transaction)

4. Use the Right Transaction Type​

  • Income for money coming in from outside
  • Expense for money going out
  • Transfer for money moving between your accounts

Using the wrong type will cause balance errors.

Negative Balances​

Some accounts can legitimately have negative balances:

Credit Cards​

Credit card accounts typically show negative balances:

  • Each expense increases the negative balance (you owe more)
  • Payments decrease the negative balance (you owe less)
Starting: ₹0
Expense:  -₹5,000 (you now owe ₹5,000)
Expense:  -₹3,000 (you now owe ₹8,000)
Payment:  +₹8,000 (you now owe ₹0)

Loans​

Loan accounts work similarly:

  • Negative balance represents debt
  • Payments reduce the debt

Overdrafts​

Bank accounts with overdraft can go negative temporarily.

Net Worth​

Your total net worth is the sum of all account balances:

Net Worth = Σ (All Account Balances)

This includes:

  • Positive balances (bank accounts, investments)
  • Negative balances (credit cards, loans)

The result shows your true financial position.

Balance History​

Why Track History?​

Historical balance tracking helps you:

  • See financial progress over time
  • Identify patterns (seasonal spending, etc.)
  • Plan for future based on past trends
  • Generate historical reports

Accessing History​

View balance history through:

  • Account details page
  • Reports and exports
  • Projected balance charts

Troubleshooting Balance Issues​

Balance Doesn't Match Bank Statement​

  1. Check for missed transactions
  2. Verify transaction amounts are correct
  3. Check initial balance was set correctly
  4. Look for duplicate entries

Sudden Balance Jump​

  1. Check recent transactions for errors
  2. Look for large transactions that might be wrong
  3. Verify transfers are recorded correctly (both sides)

Historical Balance Seems Wrong​

  1. Review transactions from that period
  2. Check if initial balance was correct
  3. Look for backdated transaction errors