A digital khata does the same job as your paper register: it tells you who owes you money and whom you owe. The difference is that it adds up by itself, keeps a backup, and lets you send a polite reminder in one tap.
This guide uses the BahiKhata digital khata, which runs in your browser with no signup. The same steps work for any khata app.
Before you start: decide three things
1. Your starting date. Choose a clean cut-off, ideally the first day of a month. Everything before that date stays in the paper book. Everything from that date onward goes in the digital khata.
2. Who goes in. List every customer who buys on credit and every supplier who gives you goods on credit. Cash-only customers do not need an account; their sales go in the cash book.
3. One person responsible. In a family shop, two people writing in two places is the fastest way to lose track. Agree who records entries, even if several people take payments.
Step 1: Set up your business profile
Open the khata and go to Settings. Add your business name, your phone number and, if you collect payments by UPI, your UPI ID. These appear on reminders and statements, so customers know exactly who is asking and how to pay.
Step 2: Add parties with opening balances
For each customer or supplier:
- Tap Add party and enter the name exactly as you and the customer know it, for example "Ramesh Kirana, Station Road" rather than just "Ramesh".
- Add the mobile number if you want to send reminders.
- Enter the opening balance from your paper register on the starting date. If they owe you, choose "They owe me". If you owe them, choose "I owe them".
Check the total of all opening balances against your paper book before moving on. If the totals do not match, fix it now; it only gets harder later.
Step 3: Record every credit sale and payment the same day
The daily rule is simple:
- Goods or cash given on credit: tap You gave and enter the amount.
- Payment received, or goods returned: tap You got and enter the amount.
Add a short note for anything you might need to explain later, such as "2 bags sugar, bill 145" or "UPI, ref 4471". A note written today saves an argument next month.
Step 4: Use the cash book for everything else
Cash sales, daily expenses, rent, salaries and bank deposits are not anyone's khata. Put them in the Cash book tab. At closing time, count the cash in your drawer and compare it with the cash book balance. If they differ, you will know the same evening instead of at the end of the year. Our guide to keeping a cash book explains the routine.
Step 5: Send reminders on a schedule, not on a mood
Most unpaid udhaar is not refused; it is forgotten. Pick a fixed rhythm, such as every Monday morning, and send reminders to anyone whose balance is older than your credit period. The khata builds a polite message with the balance and your UPI ID, ready to send on WhatsApp or SMS.
For the full method, including what to do when someone does not pay, read managing udhaar without losing customers.
Step 6: Back up every week
The BahiKhata khata keeps your data on your own device. Nobody else, including us, can see it. That also means a lost phone or a cleared browser can take it with it. Once a week:
- Go to Settings and tap Download backup.
- Save the file somewhere safe, such as your email or a cloud drive.
- If you change phones, open the khata on the new phone and use Restore backup.
Step 7: Review once a month
On the first of each month, spend ten minutes on the Reports tab:
- Total you will get and total you will give.
- Customers whose balance is older than 60 or 90 days.
- Cash in and cash out for the month.
These three numbers tell you whether the business is generating cash or just generating udhaar.
Mistakes to avoid
| Mistake | What happens | Fix |
|---|---|---|
| Recording entries "later" | Entries get missed or doubled | Record before the customer leaves |
| Same customer added twice | Balance split across two accounts | Search before adding a party |
| No notes on large entries | Disputes you cannot settle | Add bill number or item |
| Never backing up | Data lost with the phone | Weekly backup file |
| Mixing personal and shop cash | Cash book never tallies | Record owner withdrawals as "Drawings" |
Common questions
Do I need to sign up or pay?
No. The BahiKhata digital khata is free and works without an account. Your entries are stored in your browser on your device.
Can two people use the same khata on different phones?
Not automatically, because data stays on one device. You can move data with a backup file. If your shop needs live multi-user access, an accounting app with cloud sync is the better fit; our experts can help you choose one.
Does it work without internet?
Yes. Once the khata page has loaded, you can add entries offline. Sending WhatsApp reminders needs a connection.
This guide is general information to help you understand the topic. It is not legal, tax or financial advice. Rules and rates change; confirm details for your situation with a qualified professional or the official government portal. Read our editorial policy.