Chart of Accounts

The chart of accounts is a list of all of the accounts used by your business. These accounts are known as ledger accounts. You can use it to analyze your income, expenditure, assets, liabilities, and capital when running reports. This helps you to see how your business is performing at any moment in time. Each account has a unique number, although it doesn’t matter which number you use, as it’s the category you choose when creating a new account that determines where it appears on your reports.

Accounting uses a standard layout designed for small businesses. If required, you can customize the standard chart of accounts layout to suit the needs of your business.

Set up and view the Chart of Accounts

You can view the chart of accounts by clicking Settings. Chart of Accounts is under Financial Settings.

From here you can:

  • Create new accounts.
  • View details of or edit your existing ledger accounts.
  • Use filters such as included or excluded from the chart of accounts or account category.
  • Search for ledger accounts by the code, ledger name, or display name.

If there’s a check mark in the Visible column, then you can use the account when you enter transactions such as invoices or credit notes. If there’s no check mark, then you can only use the account for posting journals and reporting purposes.

Chart of Accounts defaults
Access the Chart of Accounts default settings by clicking Settings. Then, click Default Settings.

Default settings allow you to:

  • Sort GL accounts by name or account number.
  • Display negative assets as negative assets or as liabilities on the Balance Sheet.

To create a new ledger account

If you want to create a new bank account, you should do this from Banking. When you create your bank account, you can enter the account code you want to use. This ensures the account links to the correct bank account.

To save time when creating records and processing transactions, you can assign default ledger accounts in Default Settings.

  • 1. Click Settings.
  • 2. Click Chart of Accounts located under Financial Settings.
  • 3. Click New Ledger Account and complete the following information:
  • Indicates a required field.
Included in Chart Leave this check box selected.
Ledger Name * Enter the name for this account as you want it to appear on the ledger.
Display Name * If you want a different name to the ledger name to appear when posting transactions and on your reports, enter it here.
Account Number * Enter the account number or name you want to use for the new account.
*Category* * Choose the category for the ledger account.

The category determines where the account appears on your reports. If you’re not sure which category to choose, you should check with your accountant.
Category Group The category group is determined by the category you choose and you can’t change this.
Visibility The areas of Accounting in which the ledger account is available for use are automatically selected based on the category you chose. If necessary, you can change these by clearing or selecting the relevant check boxes.

Note: All ledger accounts must be available in journals and reports.
  • 4. Click Save.

To edit an existing account number

You can’t change the ledger name or category of control accounts, indicated by *, or exclude them from the chart of accounts.

  • 1. Click Settings.
  • 2. Click Chart of Accounts located under Financial Settings.
  • 3. Click the ledger account you want to edit.

To quickly find the ledger account, if you know the code or name, enter this in the search box.

  • 4. Make the necessary changes.

If you change the category, this doesn’t affect any transactions posted to the previous category using this account.

  • 5. Click Save.

To exclude a ledger account from your chart of accounts

You can’t delete a ledger account however, provided it isn’t a control account, you can exclude it from the chart of accounts. If you exclude the account, it’s not available for selection when posting transactions.

You cannot exclude a ledger account that is set as a default account within Default Settings or in a customer, vendor, product, or service record unless you set up a new default account in Default Settings or in the record.

  • 1. Click Settings.
  • 2. Click Chart of Accounts located under Financial Settings.
  • 3. Click the required ledger account.
  • 4. Clear the Included in Chart check box.
  • 5. Click Save.

If you want to include the ledger account again in the future, edit the account and select the Included in Chart box.