Name of Software: Mhasibu App

Client: Edwin Mbwambo

Introduction
The proposed accounting application aims to provide businesses with an efficient and user-
friendly solution for recording transactions and managing financial affairs. Users can register via
email or phone, and quickly set up their company with options to create inventory items and
ledgers. The intuitive dashboard offers an overview of business analytics for the past 30 days,
with easy access to transaction records and reports. The application supports detailed
transaction management, including orders, purchases, sales, payments, receipts, journal
entries, bank reconciliations, and inventory adjustments, allowing for partial payment records. It
accommodates complex inventory management with multiple warehouses and composite units
of measure. Users can generate and export financial reports in PDF and Excel formats. The
software supports multi-user access, data backup, and recovery through Dropbox or Google
Drive, ensuring data security and accessibility, ultimately enhancing financial management
efficiency for businesses.
Flow of Mhasibu App
The following is the framework expected for Mhasibu App

User Sign Up/Log In Register Company Main dashboard

(New users only)

To have details for For new User the This dashboard

user allowing them step after should have
to Signup for first Registration should analytics for the 30
time and Login be to fill basic days from today,
form. information about Will have creation
the company of ledger and
including Name, inventory Items, it
Logo, address, e- Will have Area for
mail, phone transactions that
number, will be used to
Registration record various
number (Option), transaction, It will
VIN (option) and also have report
TIN area where users
If it is not a new will be able to view
user skip to Main reports.
dashboard.

General Concept of How the Software Needs to Work:

User Registration and Authentication
1. User Registration:
o Input: Email address or phone number, password.

o Process: User submits registration form.

o Verification: System sends a verification code to the email or phone.

 o Completion: User enters the verification code to complete registration.

2. User Authentication:
o Input: Registered email/phone and password.

o Process: User logs in.

o Security: Implement password recovery and reset options.

Company Setup
3. Company Registration:
o Prompt: Upon first login, prompt the user to register their company.

o Input: Company name, address, contact information, tax ID, etc.

o Options:

 Ask if the user wants to create inventory items and ledgers immediately.
 If yes, direct to inventory and ledger creation forms.
 If no, navigate to the dashboard.
Dashboard and Navigation
4. Dashboard:
o Overview: Display business analytics for the past 30 days.

o KPIs: Total sales, expenses, profit, etc.

o Navigation: Links/buttons to transaction records and report viewing.

Inventory Management
5. Inventory Creation:
o Prompt: Option to create inventory items during company registration or from the
dashboard.
o UOM:

 Simple (e.g., kg).

 Composite (e.g., ton of 1000kg).
o Godowns: Support for multiple warehouses.

o Stock Grouping: Ability to group stock items.

Transactions Management
6. Transaction Types:
o Orders: Create and manage purchase and sales orders.
o Purchases:

 Input: Vendor details, items, quantities, prices.

 Product name/ID
 Quantity purchased
 Purchase price per unit
 Total amount (for the full purchase)
 Paid amount (if partial payment is made)
 Outstanding balance (remaining amount to be paid)
 Supplier details (optional)
 Process: Record purchase invoices.
 Payment: Allow partial payment records.
o Sales:

 Input: Customer details, items, quantities, prices.

 Product name/ID
 Quantity sold
 Sale price per unit
 Total sale amount (full sale price)
 Paid amount (if partial payment is received)
 Outstanding balance (remaining amount to be collected)
 Customer details (optional)
 Process: Record sales invoices.
 Payment: Allow partial payment records.
o Payments:

 Record payments made to suppliers and expenses.

 Apply to purchase invoices, allowing for partial payments.
o Receipts:

 Record payments received from customers and other income.

 Apply to sales invoices, allowing for partial payments.
o Journal Entries: Record non-standard transactions.

o Bank Reconciliation: Match bank statement entries with recorded transactions.

 o Inventory Adjustments: Adjust stock levels manually. Have to be approved.

Reporting and Analytics

7. Reports:
o Inventory Reports:

 Current stock levels and corresponding value for each item and group
wise
 Valuation should be on FIFO method (First in First out)
 Danger zone inventory level (Inventories below reorder level)
 Inventory inflows (purchase history with cash and credit details)
 Inventory outflows (sales history with cash and credit details)
o Invoices Report:

 Should generate Invoice from each transaction of sales and purchases

 Detailed listing of all invoices (both sales and purchase invoices),
including amounts, payment status.
o Delivery Notes

o List of all delivered items (linked to sales transactions), including delivery status,
this should be based on the customer invoice but does not contain prices and
values only quantity of items delivered included. Should be generated after every
sales transaction and its generation should mean the order is delivered.
o Cash Flow Report:

 Cash balance (current cash available)

 Cash inflows (from cash sales and cash purchases)
 Cash outflows (for cash purchases and other expenses)
o Customer and Supplier Individual Statements:

 List of credit sales (amounts owed by customers) Transaction

 Customer Statement: A report showing individual customer balances
(amounts owed), payments made, and outstanding invoices.
 List of credit purchases (amounts owed to suppliers)
 Supplier Statement: A report showing individual supplier balances
(amounts owed), payments made, and outstanding invoices.
o Order Reports:

 Sales orders (Estimates).

  Purchase orders (Estimates).
o Financial Reports:

 Purchases report.
 Sales report.
 Profit or Loss Statement:
 Daily, weekly, monthly, yearly.
 Profit and Cash Flow Analysis:
 Monthly changes in quantity sold, revenue, and expenses.
 Balance sheet
 Trial balance
Output and Printing
8. Report Export:
o Formats: PDF and Excel.

o Functionality: Option to print reports directly OR share after viewing PDF

User Management and Accessibility

9. Multi-User Support:
o Allow concurrent access by multiple users.

10. Data Backup and Recovery:

o Options: Dropbox and Google Drive integration for backup and recovery.

Additional Features
11. User Interface:
o Intuitive, user-friendly design.

o Responsive layout for various devices (desktop, tablet, mobile).

12. Notifications and Alerts:

o Alerts: Low stock levels.

o Notifications: Pending tasks like unpaid invoices and due payments.

13. Customization:
o Templates: Customizable for invoices and reports. The system should be
customizable to some extent, allowing businesses to modify features to suit their
specific needs (e.g., name of business, contacts, logo which will also be used in
invoicing).
 o Users should be able to configure basic settings (e.g., currency, or invoice
formats) without requiring developer intervention.
o Should allow user to select language between Swahili and English Language

o Settings: Configurable tax rates, discount policies, and other business rules.

14. Support and Maintenance:

o Updates: Regular software updates and maintenance.

Implementation Considerations
16. Scalability:
o Design to accommodate growing transaction volumes and user base.

17. Compliance:
o Ensure adherence to relevant accounting standards and regulations.

18. Subscription Issues:

o Pricing Model:

 The software should offer a flexible pricing model (e.g., monthly or yearly)
based on the size of the business and its needs.
 Subscription tiers should be clearly defined, with different levels of
functionality for each tier (e.g., basic vs. premium features).
o Automatic Billing and Renewals:

 The software should support automatic billing and renewal for

subscriptions, with easy-to-use payment options.
 Users should be notified before the subscription renewal date to prevent
any surprises.
 Users should be able to easily manage their subscriptions (e.g.,
upgrading, downgrading, or cancelling).
19. System Compatibility:
o The software should be compatible with commonly used operating systems
Windows, macOS, Android and IOS i.e. Should be in both Mobile App and
Desktop App.

Flow of Application
1. User Registration:
 o Register -> Verify -> Login.

2. Company Setup:
o Prompt for company registration -> Enter company details -> Option to create
inventory and ledgers -> Redirect to respective forms or dashboard.
3. Dashboard:
o View analytics -> Navigate to transactions or reports.

4. Inventory Creation:
o Access from company setup or dashboard -> Enter UOM and stock details ->
Save.
5. Transaction Management:
o Create/Manage orders -> Record purchases (allow partial payments) -> Record
sales (allow partial payments) -> Payments and receipts -> Journal entries ->
Bank reconciliation -> Inventory adjustments.
6. Reporting:
o Generate and export reports -> Print OR view in PDF/Excel.