Managing finances efficiently is one of the biggest challenges for growing startups and small businesses.
Tools like QuickBooks or Tally are popular, but they can be expensive, limited, and not customizable. That’s where Node.js accounting software comes in.
With Node.js, developers can build a real-time, scalable, and secure accounting system customized according to their specific business needs.
Its event-driven, non-blocking architecture makes it perfect for financial applications that handle multiple transactions simultaneously, like invoices, ledgers, and reports.
By using Node.js, you can:
- Manage thousands of financial records with lightning-fast performance.
- Build custom features (like tax reports or automated entries).
- Integrate APIs easily for payment gateways or analytics.
Looking to build a custom accounting solution? Then Node.js offers flexibility and speed that traditional systems can’t match.
In this blog, you’ll find a working Node.js accounting software with invoices, ledgers, and reports, and the full source code.
What Does Accounting Software Do?
You need to understand how an accounting application in Node.js works.
Every professional accounting system revolves around three main components: Invoices, Ledgers, and Reports.
1. Invoices
- Invoices are the lifeblood of any business. Your app will allow users to create, send, and track invoices for clients.
- Each invoice generates financial entries that automatically get recorded in the ledger.
2. Ledgers
- The ledger accounting app is where all financial data lives.
- It stores debit and credit entries following the double-entry logic; every transaction has two sides: one account gets debited, & another gets credited. This ensures the books always stay balanced.
3. Reports
- Finally, the system generates financial reports in Node.js, such as Profit & Loss statements, Balance Sheets, and Cash Flow Reports.
- These reports pull data from the ledger and summarize it into actionable insights for business owners or accountants.
Data Flow (Invoices → Ledger → Reports):
Client Invoice ➜ Ledger Entries ➜ Financial Reports
- An invoice is created.
- Ledger updates automatically (debit/credit).
- Reports summarize all transactions.
This simple flow ensures accuracy, automation, and transparency, which is the foundation of any great accounting system.
How Can You Set Up a NodeJs Accounting Project?
The main goal is to initialize a Node.js project that will become your Node.js bookkeeping software / Node.js accounting app.
Recommended stack
- Backend: Node.js + Express.js (fast, great for APIs), which is perfect for an accounting application Node.js project.
- Database: MongoDB + Mongoose (flexible schema) or PostgreSQL if you prefer strict relational accounting tables.
- Auth: JWT (stateless tokens)
- Extras: dotenv, cors, bcryptjs.
Folder structure (simple & practical)
nodejs-accounting/
├─ .env
├─ package.json
├─ server.js
├─ /config
│ └─ db.js
├─ /models
│ ├─ User.js
│ ├─ Customer.js
│ ├─ Invoice.js
│ └─ LedgerEntry.js
├─ /routes
│ ├─ auth.js
│ ├─ invoices.js
│ ├─ ledger.js
│ └─ reports.js
├─ /middleware
│ ├─ auth.js
│ └─ roles.js
└─ /utils
└─ accounting.js
Install dependencies
mkdir nodejs-accounting
cd nodejs-accounting
npm init -y
# Install dependencies
npm install express mongoose dotenv cors jsonwebtoken bcryptjs
# Dev dependencies (optional)
npm install -D nodemon
Basic DB config (/config/db.js)
// config/db.js
const mongoose = require('mongoose');
const connectDB = async () => {
const uri = process.env.MONGO_URI || 'mongodb://localhost:27017/accounting';
await mongoose.connect(uri, {
useNewUrlParser: true,
useUnifiedTopology: true
});
console.log('MongoDB connected');
};
module.exports = connectDB;
Main entry (server.js)
// server.js
require('dotenv').config();
const express = require('express');
const cors = require('cors');
const connectDB = require('./config/db');
const app = express();
app.use(cors());
app.use(express.json());
connectDB();
// Routes
app.use('/api/auth', require('./routes/auth'));
app.use('/api/invoices', require('./routes/invoices'));
app.use('/api/ledger', require('./routes/ledger'));
app.use('/api/reports', require('./routes/reports'));
const PORT = process.env.PORT || 4000;
app.listen(PORT, () => console.log(`Server running on port ${PORT}`));
If you prefer PostgreSQL, use pg + an ORM like Sequelize or knex. For ledger accounting app scenarios, relational schemas map well to double-entry bookkeeping.
How to Build the Invoice Module?
We’ll create:
- Customer model
- Invoice model
- Endpoints to create/read/update/delete invoices
- When an invoice is created, ledger entries are generated (see ledger section)
Models
/models/Customer.js
const mongoose = require('mongoose');
const CustomerSchema = new mongoose.Schema({
name: { type: String, required: true },
email: String,
phone: String,
address: String,
createdAt: { type: Date, default: Date.now }
});
module.exports = mongoose.model('Customer', CustomerSchema);
/models/Invoice.js
const mongoose = require('mongoose');
const LineItemSchema = new mongoose.Schema({
description: String,
quantity: { type: Number, default: 1 },
unitPrice: { type: Number, default: 0 },
amount: { type: Number, default: 0 }
});
const InvoiceSchema = new mongoose.Schema({
number: { type: String, required: true, unique: true },
customer: { type: mongoose.Schema.Types.ObjectId, ref: 'Customer', required: true },
date: { type: Date, default: Date.now },
dueDate: Date,
lineItems: [LineItemSchema],
subtotal: { type: Number, default: 0 },
tax: { type: Number, default: 0 },
total: { type: Number, default: 0 },
status: { type: String, enum: ['draft', 'sent', 'paid'], default: 'draft' },
createdAt: { type: Date, default: Date.now }
});
module.exports = mongoose.model('Invoice', InvoiceSchema);
Utility to compute invoice totals (/utils/accounting.js)
// utils/accounting.js
function calculateInvoice(invoice) {
let subtotal = 0;
invoice.lineItems.forEach(item => {
item.amount = (item.quantity || 0) * (item.unitPrice || 0);
subtotal += item.amount;
});
const tax = Math.round((subtotal * (invoice.tax || 0)) * 100) / 100;
const total = subtotal + tax;
return { subtotal, tax, total };
}
module.exports = { calculateInvoice };
Invoice routes (/routes/invoices.js)
const express = require('express');
const router = express.Router();
const Invoice = require('../models/Invoice');
const Customer = require('../models/Customer');
const { calculateInvoice } = require('../utils/accounting');
const { createLedgerEntriesForInvoice } = require('../utils/ledgerOps'); // we'll implement in ledger section
const auth = require('../middleware/auth');
// Create invoice (authenticated)
router.post('/', auth, async (req, res) => {
try {
const { number, customerId, lineItems = [], tax = 0, date, dueDate } = req.body;
const customer = await Customer.findById(customerId);
if (!customer) return res.status(400).json({ msg: 'Customer not found' });
const invoice = new Invoice({
number,
customer: customer._id,
lineItems,
tax,
date,
dueDate
});
// calculate totals
const totals = calculateInvoice(invoice);
invoice.subtotal = totals.subtotal;
invoice.tax = totals.tax;
invoice.total = totals.total;
await invoice.save();
// Create ledger entries (debit accounts receivable, credit sales)
await createLedgerEntriesForInvoice(invoice);
res.status(201).json(invoice);
} catch (err) {
console.error(err);
res.status(500).send('Server error');
}
});
// Get invoice by id
router.get('/:id', auth, async (req, res) => {
try {
const invoice = await Invoice.findById(req.params.id).populate('customer');
if (!invoice) return res.status(404).json({ msg: 'Invoice not found' });
res.json(invoice);
} catch (err) {
res.status(500).send('Server error');
}
});
// Update invoice (partial)
router.put('/:id', auth, async (req, res) => {
try {
const invoice = await Invoice.findById(req.params.id);
if (!invoice) return res.status(404).json({ msg: 'Invoice not found' });
Object.assign(invoice, req.body);
// Recalculate totals if lineItems or tax changed
const totals = calculateInvoice(invoice);
invoice.subtotal = totals.subtotal;
invoice.tax = totals.tax;
invoice.total = totals.total;
await invoice.save();
res.json(invoice);
} catch (err) {
res.status(500).send('Server error');
}
});
// Delete invoice
router.delete('/:id', auth, async (req, res) => {
try {
const invoice = await Invoice.findByIdAndDelete(req.params.id);
if (!invoice) return res.status(404).json({ msg: 'Invoice not found' });
// Optionally: create reversing ledger entries (or mark void)
res.json({ msg: 'Invoice deleted' });
} catch (err) {
res.status(500).send('Server error');
}
});
module.exports = router;
How to Create the Ledger Module? (Double-Entry System)
Double-entry bookkeeping is the backbone of reliable accounting. For every financial transaction:
- One account is debited.
- Another account is credited.
- Total debits must equal total credits.
LedgerEntry model (/models/LedgerEntry.js)
const mongoose = require('mongoose');
const LedgerEntrySchema = new mongoose.Schema({
date: { type: Date, default: Date.now },
account: { type: String, required: true }, // e.g., "Accounts Receivable", "Sales", "Cash"
type: { type: String, enum: ['debit', 'credit'], required: true },
amount: { type: Number, required: true },
referenceType: String, // e.g., 'Invoice'
referenceId: { type: mongoose.Schema.Types.ObjectId },
notes: String,
createdAt: { type: Date, default: Date.now }
});
module.exports = mongoose.model('LedgerEntry', LedgerEntrySchema);
Ledger operations utility (/utils/ledgerOps.js)
// utils/ledgerOps.js
const LedgerEntry = require('../models/LedgerEntry');
/**
* createDoubleEntry: creates two ledger entries ensuring debit == credit
* @param {String} debitAccount
* @param {String} creditAccount
* @param {Number} amount
* @param {Object} opts - { referenceType, referenceId, notes }
*/
async function createDoubleEntry(debitAccount, creditAccount, amount, opts = {}) {
if (amount <= 0) throw new Error('Amount must be > 0');
const debit = new LedgerEntry({
account: debitAccount,
type: 'debit',
amount,
referenceType: opts.referenceType,
referenceId: opts.referenceId,
notes: opts.notes || ''
});
const credit = new LedgerEntry({
account: creditAccount,
type: 'credit',
amount,
referenceType: opts.referenceType,
referenceId: opts.referenceId,
notes: opts.notes || ''
});
// Save both entries (atomicity considerations: in production use transactions)
await debit.save();
await credit.save();
return { debit, credit };
}
/**
* createLedgerEntriesForInvoice(invoice)
* Debits Accounts Receivable, Credits Sales (and possibly tax payable)
*/
async function createLedgerEntriesForInvoice(invoice) {
const invoiceId = invoice._id;
const amount = invoice.total;
// Example accounts: "Accounts Receivable", "Sales"
await createDoubleEntry('Accounts Receivable', 'Sales', amount, { referenceType: 'Invoice', referenceId: invoiceId, notes: `Invoice ${invoice.number}` });
// If tax exists, split tax into its own credit and adjust sales
if (invoice.tax && invoice.tax > 0) {
// Reduce Sales credit by tax portion and credit Tax Payable
// For simplicity: create an entry for Tax Payable
await createDoubleEntry('Accounts Receivable', 'Tax Payable', invoice.tax, { referenceType: 'Invoice', referenceId: invoiceId, notes: `Tax for ${invoice.number}`});
// To avoid double-crediting Sales, you could instead credit Sales for (subtotal) and Tax Payable for tax.
}
return true;
}
module.exports = { createDoubleEntry, createLedgerEntriesForInvoice };
For full accounting integrity, use DB transactions (MongoDB sessions or SQL transactions) to ensure both entries are created atomically.
Ledger routes (/routes/ledger.js)
const express = require('express');
const router = express.Router();
const LedgerEntry = require('../models/LedgerEntry');
const auth = require('../middleware/auth');
const roles = require('../middleware/roles');
// Get ledger entries (with optional account filter)
router.get('/', auth, async (req, res) => {
try {
const { account } = req.query;
const query = account ? { account } : {};
const entries = await LedgerEntry.find(query).sort({ date: -1 }).limit(500);
res.json(entries);
} catch (err) {
res.status(500).send('Server error');
}
});
// Create manual ledger entry (admin/accountant)
router.post('/', auth, roles(['admin', 'accountant']), async (req, res) => {
try {
const { debitAccount, creditAccount, amount, date, notes } = req.body;
const { createDoubleEntry } = require('../utils/ledgerOps');
await createDoubleEntry(debitAccount, creditAccount, amount, { notes });
res.json({ msg: 'Ledger entries created' });
} catch (err) {
console.error(err);
res.status(500).send(err.message || 'Server error');
}
});
module.exports = router;
How to Generate Financial Reports for Accounting Software in NodeJS?
Reports aggregate ledger data into meaningful financial statements: Profit & Loss (P&L), Balance Sheet, etc.
Profit & Loss (P&L): Basic approach
- Revenue (Sales) = sum of credits to Sales account minus debits.
- Expenses = sum of debits to expense accounts.
- P&L = Revenue − Expenses.
Example aggregation for MongoDB (P&L & Balance) (/routes/reports.js)
const express = require('express');
const router = express.Router();
const LedgerEntry = require('../models/LedgerEntry');
const auth = require('../middleware/auth');
// Helper: sum amounts by account and type
async function sumByAccount(match = {}) {
const pipeline = [
{ $match: match },
{ $group: {
_id: { account: "$account", type: "$type" },
total: { $sum: "$amount" }
} }
];
return LedgerEntry.aggregate(pipeline);
}
// Profit & Loss: sum sales and expenses over a date range
router.get('/pl', auth, async (req, res) => {
try {
const { from, to } = req.query;
const match = {};
if (from || to) match.date = {};
if (from) match.date.$gte = new Date(from);
if (to) match.date.$lte = new Date(to);
const agg = await LedgerEntry.aggregate([
{ $match: match },
{ $group: {
_id: { account: "$account", type: "$type" },
total: { $sum: "$amount" }
} }
]);
// Transform to easier map
const map = {};
agg.forEach(r => {
const key = r._id.account;
map[key] = map[key] || { debit: 0, credit: 0 };
map[key][r._id.type] = r.total;
});
// Calculate basic P&L
const salesCredit = (map['Sales'] && map['Sales'].credit) || 0;
const salesDebit = (map['Sales'] && map['Sales'].debit) || 0;
const revenue = salesCredit - salesDebit;
// Example: assume accounts starting with 'Expense' are expenses
let expenses = 0;
Object.keys(map).forEach(acc => {
if (acc.toLowerCase().includes('expense')) {
const debit = map[acc].debit || 0;
const credit = map[acc].credit || 0;
expenses += (debit - credit);
}
});
const profit = revenue - expenses;
res.json({ revenue, expenses, profit, byAccount: map });
} catch (err) {
console.error(err);
res.status(500).send('Server error');
}
});
// Balance Sheet: Assets = Liabilities + Equity (simple snapshot)
router.get('/balance-sheet', auth, async (req, res) => {
try {
// Sum all accounts
const agg = await LedgerEntry.aggregate([
{ $group: {
_id: { account: "$account", type: "$type" },
total: { $sum: "$amount" }
} }
]);
const map = {};
agg.forEach(r => {
const key = r._id.account;
map[key] = map[key] || { debit: 0, credit: 0 };
map[key][r._id.type] = r.total;
});
// Build a minimal balance sheet categorization (customize for your chart of accounts)
// Example categories:
const assets = ['Cash', 'Accounts Receivable'];
const liabilities = ['Accounts Payable', 'Tax Payable'];
const equity = ['Owner Equity', 'Retained Earnings'];
const sumAccounts = (list) => list.reduce((s, acc) => {
const m = map[acc] || { debit: 0, credit: 0 };
return s + ((m.debit || 0) - (m.credit || 0));
}, 0);
const totalAssets = sumAccounts(assets);
const totalLiabilities = sumAccounts(liabilities);
const totalEquity = sumAccounts(equity);
res.json({
totalAssets,
totalLiabilities,
totalEquity,
assetsSnapshot: assets.reduce((o, acc) => { o[acc] = map[acc]; return o; }, {}),
liabilitiesSnapshot: liabilities.reduce((o, acc) => { o[acc] = map[acc]; return o; }, {}),
});
} catch (err) {
console.error(err);
res.status(500).send('Server error');
}
});
module.exports = router;
Here’s the Complete GitHub Code to Build an Accounting Software in NodeJs.
Why Should You Choose Us If You Want NodeJs Accounting Software?
Our NodeJs developers combine technology, scalability, and domain knowledge to create custom accounting & bookkeeping software according to your business model.
- End-to-End Node.js Development: We design, build, and deploy complete accounting applications using modern Node.js frameworks.
- Custom Accounting Features: Whether you need automated ledgers, tax calculations, or AI-driven report generation, we build features that match your exact workflow.
- Enterprise-Grade Security: We implement JWT authentication, role-based access control, and data encryption to ensure your secure accounting software in Node.js meets compliance standards.
- Real-Time Financial Reports: Using Node.js and MongoDB/PostgreSQL, our systems generate instant Profit & Loss and Balance Sheet reports.
- Cloud Deployment & Scalability: We help you deploy your Node.js financial app on AWS, Vercel, or Render for high performance and easy scaling as your user base grows.
Want a Highly Scalable NodeJs Solution? Contact Us Today!
How to Improve Your Accounting App?
Once your base application is running smoothly, take it to the next level by adding smart and advanced features.
Here are a few ideas to make your smart accounting software in Node.js stand out:
- Add Data Visualization: Integrate charts and graphs using libraries like Chart.js or D3.js to show trends in income, expenses, or profit.
- Integrate Payment Gateways: Connect payment APIs like Stripe or PayPal for real-time invoice payments.
- Automate Tax and Reporting: Automatically generate tax summaries or monthly P&L reports for accountants.
- AI-Based Insights: Upgrade your advanced accounting app with AI to predict cash flow, detect anomalies, or suggest cost optimizations.
These improvements can turn your basic accounting system into a complete financial management platform that is scalable for businesses of all sizes.
Build Smarter Accounting Software with NodeJs
With the help of this code, you can create an accounting system with features like invoices, ledgers, and financial reports in Node.js.
By following this blog, you can build your own custom accounting solution that fits your workflow and integrates seamlessly with your business operations.
FAQs
- You can use Node.js with Express and MongoDB or PostgreSQL to create a backend that handles invoices, ledgers, and financial reports.
- Start by setting up routes for transactions, adding a double-entry ledger logic, and generating reports using aggregation queries.
- MongoDB and PostgreSQL are both great choices.
- MongoDB is flexible and schema-less, while PostgreSQL offers strong relational data management, which is perfect for ledgers and financial records.
- Yes, Node.js can efficiently handle double-entry systems by using event-driven architecture and asynchronous database operations to manage debits and credits in real-time.
- You can create invoice templates using libraries like PDFKit or Puppeteer and generate financial reports by aggregating ledger data with MongoDB queries or SQL statements.