Chart of accounts

The Chart of Accounts is a list of all nominal ledger accounts used by your business.

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What is a nominal account?

Nominal accounts are categorized (for example, assets, liabilities, and sales), internal ledger accounts to which you post transactions. Each account has a unique nominal code, though you can change them to use your own numbering scheme if needed.

Nominal accounts are listed by category on your balance sheet and other management reports you use to analyse the health of your business. The category you choose when adding a ledger account (or account type, when adding a bank account) determines where it is listed on your reports.

About the Chart of Accounts

Accounting uses a standard Chart of Accounts, including control accounts. Control accounts are special nominal accounts used by Accounting when recording transactions to ensure that items such as your VAT are recorded correctly in your accounts.

While the Chart of Accounts in Accounting is suitable for most small businesses, you can customize it as needed for your business. Except for control accounts, you can edit all nominal general ledger accounts.

Accessing the Chart of Accounts

Click Settings then click Chart of Accounts. From here, you can:

  • Review or edit your existing nominal ledger accounts.
  • Add a new nominal ledger account.
  • View which nominal ledger accounts are control accounts (indicated with an asterisk).
  • Search for an account by ledger name, display name, or nominal code.
  • Filter the list by accounts included (or excluded) from the Chart of Accounts or by category.

If there is a tick in the Visibility column, the account is available for selection in the Ledger Account field in transactional areas (for example, when creating a quick entry). If there is no tick in the column, then you can only use the account for posting journals and reporting purposes.

Adding bank accounts

When you add a bank account (from Banking), Accounting automatically creates a nominal ledger account for it with account type-appropriate settings. However, you can edit the bank account to use a different nominal ledger account, as needed.

If you create a Category under Bank in the Chart Of Accounts this wont create a bank account within banking.

You cannot change the nominal ledger account setting for a bank account after a transaction is created. Opening balance entries are posted as transactions; so, if you need to change the ledger account, be sure to do so before entering an opening balance.

To create a new nominal ledger account

  • 1. Go to Settings, then click Chart of Accounts.
  • 2. Click New Ledger Account, then complete the following information:
Included in Chart Leave this check box selected to include the account in your Chart of Accounts.
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.
Nominal Code * Enter the nominal code you want to use for the new account.

If you want to keep similar nominal codes together, the default nominal code ranges for each category are as follows:

Assets = 0001 – 1999
Liabilities = 2000 – 2999
Capital = 3000 – 3999
Income = 4000 – 4999
Expenditure – Direct expenses = 5000 – 5999
Expenditure – Overheads = 6000 – 9999
Category *  Choose the category for the nominal ledger account. The category determines where the account appears on your management 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 cannot change it.
VAT Rate Choose a default VAT rate. If required, you can change the VAT rate when entering transactions.
Visibility The areas of Accounting in which the nominal 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 nominal ledger accounts must be available in journals and reports.

* These details are compulsory.

  • 3. Click Save.

To edit an existing nominal ledger account

You cannot change the ledger name or category of control accounts (indicated by an asterisk) or exclude them from the Chart of Accounts.

  • 1. Go to Settings, then click Chart of Accounts.
  • 2. Click the nominal ledger account you want to edit. To quickly find a nominal ledger account, enter the account name or nominal code in the Search field then click Search.
  • 3. Make the necessary changes.

If you change the category of a nominal account, Accounting does not update any transactions posted to the nominal account with the new category. However, it will change where they are listed in reports. For example, you change the category of nominal account 5000 Cost of Sales – Goods from Direct Expenses to Overheads. When viewing your Profit & Loss report, account 5000 will be listed under Overheads and will include the transactions posted when the category was Direct Expenses.

  • 4. Click Save.

To exclude a nominal ledger

While you cannot delete a nominal ledger account, provided it isn’t a control account, you can exclude it from the Chart of Accounts. If you exclude the nominal ledger account, it’s not available for selection when posting transactions.

  • 1. Click Settings, then click Chart of Accounts.
  • 2. Click the required nominal ledger account, then clear the Included in Chart check box.
  • 3. Click Save.

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

To save or print the Chart of Accounts list

  • 1. Click Reporting, then click More.
  • 2. Click Chart of Accounts.
  • 3. By default, the report shows a list of all nominal ledger accounts. To view a list of ledger accounts for a particular category, click the Category arrow then click the relevant category.
  • 4. Click Export to save the report as a comma-separated value (CSV) or portable document format (PDF) file. The report saves to the Accounting downloads folder.

If you exported the report to a CSV file, your browser may prompt you to choose a folder to export it to instead of automatically using the Accounting downloads folder. Also, if you exported it as a PDF file, your browser may automatically open the report in a new window. You can then download or print the report from the PDF window.