The Chart of Accounts is a list of all nominal accounts in use by your organisation. It defines each class of items for which the money or the equivalent is spent or received. It is used to organise the finances of your organisation to segregate expenditures, revenue, assets and liabilities into the Profit and Loss, Trial Balance or Sales Tax reports.
Each account must belong to an account type to ensure the balances of the nominal accounts are presented in the correct financial report.
- Asset – equipment, cash, land/buildings
- Liability – loans, overdrafts
- Equity – capital, accumulated funds
- Revenue – income from sale of goods or services
- Cost of Sales – materials, labour, cost of stock
- Other Income – income from goods or services not part of standard offering
- Expense – utility bills, stationary
- Tax – for tax-related transactions
The Account Type assigned will determine which reports the balances of the nominal accounts appear in:
- Trial Balance – Includes the account types - Equity, Asset Liability
- Profit & Loss - Includes the account types - Revenue, Other Income, Cost of Sales, Other Expense
- Sales Tax - Includes the Tax account type
Accounts can also be flagged with:
- Accounts Payable - this account records the item values from any Purchase Invoices created.
- Account Receivable - Accounts Receivable, this account records the item values from any Sales Invoices created.
- Bank - When creating a receipt for a Sales Invoice paid or making a payment against a Purchase Invoice the list of accounts that the monies are received to or from are filtered to show only nominal accounts with the ‘Bank’ flag.
Please see Import Tool if you wish to bulk add your Chart of Accounts.
- Click the green +Add button, this will open a dialog box.
- Enter your Code: this must be numeric and unique.
- Name: the title of the nominal account, e.g. ‘Stationary’.
- Type: select from the Account Types available.
- Bank/Accounts Payable/Accounts Receivable: see accounts flags for more details about which you should choose.
- Currency: select the currency, or MULTI for multiple currencies.
Your new Nominal Account will now be shown as created on the table of Nominal Accounts.
- Click on the row of the Nominal Account you wish to edit.
- Make desired changes.
- Click Save.
Please note that the following accounts are reserved for system use and can’t be amended:
|2200||UK VAT Control Account|
|4000||Public Course Income|
Private Training Income
Learning Path Income
|10001||Compound Journal Suspense Account|