Chart of Accounts

The Chart of Accounts is a list of all nominal accounts in use by your organisation. It defines each class of items for which money, or its equivalent, is spent or received. It is used to organise your organisation’s finances by separating expenditures, revenue, assets, and liabilities into the Profit and Loss, Trial Balance, and Sales Tax reports.

Account Types

Each account must belong to an account type so that nominal account balances appear in the correct financial reports.

1. Asset – equipment, cash, land/buildings
2. Liability – loans, overdrafts
3. Equity – capital, accumulated funds
4. Revenue – income from sale of goods or services
5. Cost of Sales – materials, labour, cost of stock
6. Other Income – income from goods or services not part of the standard offering
7. Expense – utility bills, stationery
8. Tax – for tax-related transactions

The assigned account type determines which reports the balances of nominal accounts appear in:

• Trial Balance – includes Equity, Asset, and Liability account types
• Profit & Loss – includes Revenue, Other Income, Cost of Sales, and Expense account types
• Sales Tax – includes the Tax account type

Accounts can also be flagged with:

• Accounts Payable – this account records item values from Purchase Invoices.
• Accounts Receivable – this account records item values from Sales Invoices.
• Bank – when creating a receipt for a paid Sales Invoice or making a payment against a Purchase Invoice, the list of accounts money is received to or paid from is filtered to show only nominal accounts with the Bank flag.

Add a Nominal Account

See Import Tool if you want to bulk add your Chart of Accounts.

1. Click the green +Add button to open a dialog box.
2. Enter the Code. This must be numeric and unique.
3. Enter the Name, for example Stationery.
4. Select a Type from the Account Types available.
5. Set Bank, Accounts Payable, or Accounts Receivable as needed.
6. Select the Currency, or MULTI for multiple currencies.

The new nominal account is then shown in the Nominal Accounts table.

Edit a Nominal Account

1. Click the row of the nominal account you want to edit.
2. Make the required changes.
3. Click Save.

The following accounts are reserved for system use and cannot be amended: