Financial Accounting - Frappe Lending

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Financial Accounting

Handling loan transactions, tracking repayments, and maintaining accurate financial records can be overwhelming. Every disbursement, collection, and adjustment needs to be recorded properly to keep books balanced and ensure compliance. Manual tracking increases the chances of errors, misplaced entries, and time-consuming reconciliations. Frappe Lending takes care of the numbers so you don’t have to, automating entries and keeping your financial records accurate at all times.

Automate loan accounting

Process disbursement and collection entries

Handle suspense accounting

Generate financial reports

Automate loan accounting

Lending isn’t just about giving out money—it’s about keeping track of where every penny goes. Interest accrual, penalties, and repayments need to be logged properly to avoid mismatched books. Instead of spending hours manually updating ledgers, Frappe Lending automatically records financial transactions, reducing errors and keeping your accounts in check.

Process disbursement and collection entries

Once a loan is approved, the money needs to move. When it’s disbursed, the system logs the entry instantly, mapping it to the right accounts. When repayments come in, collections are broken down across principal, interest, and any additional charges. This ensures that every payment is properly accounted for, eliminating confusion and making reconciliation effortless.

Handle suspense accounting

Non-performing loans can complicate financial reporting. Interest and charges on NPAs can’t be treated as income until they are actually received, but manually managing these exceptions leads to discrepancies. Frappe Lending automatically moves outstanding amounts to a suspense account, ensuring your revenue figures reflect real collections. The moment a payment is made, the system transfers the funds back to income, keeping everything transparent and in order.

Generate financial reports

Without clear reports, understanding the health of your loan portfolio becomes difficult. Are collections on track? How much interest has been recognized? What’s the financial exposure on overdue loans? Frappe Lending provides detailed reports—trial balance, balance sheet, profit and loss statements, and loan ledgers—so you always have the data you need to make the right financial decisions.