Xero

Prerequisites

• Node.jsfree

  Required for running the full-stack TypeScript environment and package manager.

• GitHubfree

  Version control and seamless CI/CD pipeline integration for deployment.

AI coding tools

• Claude Code

  Executes multi-file changes across the backend ledger and frontend UI autonomously.

• Cursor

  Ideal for fine-tuning complex accounting data tables, charts, and ledger view components.

Build guide

1. 01Project Scaffolding & Double-Entry Ledger Schema

   Initialize a Next.js project with Tailwind CSS, configure Supabase client connections, and design the immutable double-entry database schema with accounts, journal entries, and transaction line items.

   Create a new Next.js project configured with TypeScript, Tailwind CSS, and shadcn/ui components. Set up Supabase client helpers and create the PostgreSQL database schema for an accounting ledger. Write SQL migrations for tables: `organizations`, `accounts` (with types: asset, liability, equity, revenue, expense), `journal_entries` (with date, description, status), and `journal_line_items` (with entry_id, account_id, debit amount, credit amount). Enforce a database constraint or server-side validation check that ensures the sum of debits equals the sum of credits for every journal entry before commit. Build a clean dashboard shell layout with a sidebar navigation for Invoices, Bills, Bank Accounts, Reports, and Settings.

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2. 02Invoicing & Bill Management Module

   Build CRUD interfaces for creating, viewing, and tracking customer invoices and supplier bills, complete with tax calculations and status workflows.

   Build the invoicing and bill tracking module using Next.js Server Actions and shadcn/ui data tables. Create database tables for `invoices` (customer name, issue date, due date, status, subtotal, tax, total) and `invoice_items` (description, quantity, unit price). Implement a form to create and edit invoices that automatically posts a balancing double-entry journal entry to the general ledger upon approval (Debit Accounts Receivable, Credit Revenue, Credit Tax Liability). Create equivalent tables and workflows for supplier `bills` that post debits to expenses and credits to Accounts Payable. Add PDF generation for invoices using a lightweight library.

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3. 03Bank Reconciliation Engine

   Develop the bank account import and transaction matching interface to reconcile bank statement lines against ledger entries.

   Implement a bank reconciliation interface. Create a `bank_accounts` table and a `bank_transactions` table to ingest CSV bank statements. Build a split-pane reconciliation screen in Next.js: the left side displays imported bank statement lines, and the right side displays matching outstanding ledger transactions (invoices, bills, spend money entries). Write matching logic that allows users to match or reconcile a bank line to one or more ledger transactions, updating the transaction status to reconciled and logging audit records in a `reconciliations` table.

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4. 04Smart Document Capture & Receipt Parsing

   Integrate an AI vision extraction pipeline to parse uploaded receipts and bills into structured line items and pre-fill records.

   Build a smart document capture feature using Supabase Storage and an LLM Vision API integration. Create an upload dropzone where users can drop PDF receipts or invoice scans. Write a server action that sends the document image to a vision model with a structured prompt to extract vendor name, date, line items, tax amount, and total. Return the parsed JSON data to pre-fill the manual bill creation form, allowing the user to review and post the extracted bill directly to the general ledger.

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5. 05Financial Reporting & Cash Flow Dashboards

   Construct core accounting reports including Profit and Loss, Balance Sheet, and an interactive cash flow forecast visualization using Recharts.

   Build core financial reporting views and dashboards. Implement server-side calculation functions to aggregate general ledger account balances into standard financial reports: a Profit & Loss statement (revenue minus expenses for a given date range) and a Balance Sheet (assets equal liabilities plus equity). Build a cash flow forecast component using Recharts that graphs historical cash balance trends and projects a 30-day cash flow forecast based on upcoming invoice due dates and bill payment schedules.

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Cost vs paying for Xero