diff --git a/backend/src/modules/accounts/accounts.service.ts b/backend/src/modules/accounts/accounts.service.ts
index 36660dd..0a6d1b4 100644
--- a/backend/src/modules/accounts/accounts.service.ts
+++ b/backend/src/modules/accounts/accounts.service.ts
@@ -8,22 +8,34 @@ export class AccountsService {
   constructor(private tenant: TenantService) {}
 
   async findAll(fundType?: string, includeArchived?: boolean) {
-    let sql = 'SELECT * FROM accounts';
-    const params: any[] = [];
     const conditions: string[] = [];
+    const params: any[] = [];
 
     if (!includeArchived) {
-      conditions.push('is_active = true');
+      conditions.push('a.is_active = true');
     }
     if (fundType) {
       params.push(fundType);
-      conditions.push(`fund_type = $${params.length}`);
+      conditions.push(`a.fund_type = $${params.length}`);
     }
 
-    if (conditions.length) {
-      sql += ' WHERE ' + conditions.join(' AND ');
-    }
-    sql += ' ORDER BY account_number';
+    const whereClause = conditions.length ? 'WHERE ' + conditions.join(' AND ') : '';
+
+    const sql = `
+      SELECT a.*,
+        CASE
+          WHEN a.account_type IN ('asset', 'expense')
+            THEN COALESCE(SUM(jel.debit), 0) - COALESCE(SUM(jel.credit), 0)
+          ELSE COALESCE(SUM(jel.credit), 0) - COALESCE(SUM(jel.debit), 0)
+        END as balance
+      FROM accounts a
+      LEFT JOIN journal_entry_lines jel ON jel.account_id = a.id
+      LEFT JOIN journal_entries je ON je.id = jel.journal_entry_id
+        AND je.is_posted = true AND je.is_void = false
+      ${whereClause}
+      GROUP BY a.id
+      ORDER BY a.account_number
+    `;
     return this.tenant.query(sql, params);
   }
 
@@ -79,12 +91,24 @@ export class AccountsService {
         const acctDebit = isDebitNormal ? absAmount : 0;
         const acctCredit = isDebitNormal ? 0 : absAmount;
 
-        // Determine equity offset account based on fund type
+        // Determine equity offset account based on fund type (auto-create if missing)
         const equityAccountNumber = dto.fundType === 'reserve' ? 3100 : 3000;
-        const equityRows = await this.tenant.query(
+        const equityName = dto.fundType === 'reserve' ? 'Reserve Fund Balance' : 'Operating Fund Balance';
+        let equityRows = await this.tenant.query(
           'SELECT id FROM accounts WHERE account_number = $1',
           [equityAccountNumber],
         );
+        if (!equityRows.length) {
+          await this.tenant.query(
+            `INSERT INTO accounts (account_number, name, account_type, fund_type, is_system)
+             VALUES ($1, $2, 'equity', $3, true)`,
+            [equityAccountNumber, equityName, dto.fundType],
+          );
+          equityRows = await this.tenant.query(
+            'SELECT id FROM accounts WHERE account_number = $1',
+            [equityAccountNumber],
+          );
+        }
 
         // Create the journal entry
         const jeInsert = await this.tenant.query(
diff --git a/backend/src/modules/reports/reports.service.ts b/backend/src/modules/reports/reports.service.ts
index c926abe..e0d921d 100644
--- a/backend/src/modules/reports/reports.service.ts
+++ b/backend/src/modules/reports/reports.service.ts
@@ -394,28 +394,44 @@ export class ReportsService {
   }
 
   async getDashboardKPIs() {
-    // Total cash (all asset accounts with 'Cash' in name)
+    // Total cash: ALL asset accounts (not just those named "Cash")
+    // Uses proper double-entry balance: debit - credit for assets
     const cash = await this.tenant.query(`
       SELECT COALESCE(SUM(sub.balance), 0) as total FROM (
         SELECT COALESCE(SUM(jel.debit), 0) - COALESCE(SUM(jel.credit), 0) as balance
         FROM accounts a
         LEFT JOIN journal_entry_lines jel ON jel.account_id = a.id
         LEFT JOIN journal_entries je ON je.id = jel.journal_entry_id AND je.is_posted = true AND je.is_void = false
-        WHERE a.account_type = 'asset' AND a.name LIKE '%Cash%' AND a.is_active = true
+        WHERE a.account_type = 'asset' AND a.is_active = true
         GROUP BY a.id
       ) sub
     `);
     const totalCash = parseFloat(cash[0]?.total || '0');
 
-    // Receivables
+    // Receivables: sum of unpaid invoices
     const ar = await this.tenant.query(`
       SELECT COALESCE(SUM(amount - amount_paid), 0) as total
       FROM invoices WHERE status NOT IN ('paid', 'void', 'written_off')
     `);
 
-    // Reserve fund balance
+    // Reserve fund balance: computed from journal entries on reserve fund_type accounts
+    // credit - debit for equity/liability/income accounts (reserve equity + reserve income - reserve expenses)
     const reserves = await this.tenant.query(`
-      SELECT COALESCE(SUM(current_fund_balance), 0) as total FROM reserve_components
+      SELECT COALESCE(SUM(sub.balance), 0) as total FROM (
+        SELECT
+          CASE
+            WHEN a.account_type IN ('asset')
+              THEN COALESCE(SUM(jel.debit), 0) - COALESCE(SUM(jel.credit), 0)
+            WHEN a.account_type IN ('expense')
+              THEN -(COALESCE(SUM(jel.debit), 0) - COALESCE(SUM(jel.credit), 0))
+            ELSE COALESCE(SUM(jel.credit), 0) - COALESCE(SUM(jel.debit), 0)
+          END as balance
+        FROM accounts a
+        LEFT JOIN journal_entry_lines jel ON jel.account_id = a.id
+        LEFT JOIN journal_entries je ON je.id = jel.journal_entry_id AND je.is_posted = true AND je.is_void = false
+        WHERE a.fund_type = 'reserve' AND a.account_type IN ('asset') AND a.is_active = true
+        GROUP BY a.id, a.account_type
+      ) sub
     `);
 
     // Delinquent count (overdue invoices)
@@ -434,7 +450,7 @@ export class ReportsService {
     return {
       total_cash: totalCash.toFixed(2),
       total_receivables: ar[0]?.total || '0.00',
-      reserve_fund_balance: reserves[0]?.total || '0.00',
+      reserve_fund_balance: parseFloat(reserves[0]?.total || '0').toFixed(2),
       delinquent_units: parseInt(delinquent[0]?.count || '0'),
       recent_transactions: recentTx,
     };