🧱 Chart of Accounts

Chart of Accounts Overview

The Chart of Accounts is the foundation of your entire accounting system - think of it as the filing system for all your financial transactions. Every dollar that comes in or goes out of your business gets filed into a specific account. This organized structure ensures you can track exactly where your money is coming from and where it's going, making it possible to generate meaningful reports and make smart business decisions.

Why This Matters

Without a properly organized chart of accounts, your financial records would be like a messy desk with papers scattered everywhere - you'd have the information but couldn't find it when you need it. A well-structured chart of accounts helps you:

• Track income and expenses by category

• Generate accurate financial reports

• Make informed business decisions

• Satisfy tax and regulatory requirements

• Identify profitable and unprofitable areas of your business

Prerequisites

• Accounting module access permissions

• Basic understanding of your business categories

• Company setup completed

Step-by-Step Instructions

1. Access Chart of Accounts

📸 Image Placeholder: Left navigation highlighting "Accounting" → "Chart of Accounts"

1. Click "Accounting" in the left navigation

2. Select "Chart of Accounts" from the dropdown menu

3. View accounts organized by category tabs

2. Understand Account Categories

📸 Image Placeholder: Category tabs screenshot

The system organizes accounts into five main categories:

• Assets 💰: What your business owns (cash, equipment, inventory)

• Liabilities 💳: What your business owes (loans, credit cards, bills)

• Equity 🏢: Owner's investment and retained earnings

• Revenue 💵: Money coming into your business

• Expenses 💸: Money going out of your business

3. View Account Details

📸 Image Placeholder: Account detail view screenshot

• Click on any account tab to see accounts in that category

• Each account shows:

  • Account code (unique identifier)

  • Account name (descriptive title)

  • Current balance

  • Last transaction date

  • Currency designation

4. Create New Account

📸 Image Placeholder: Add new account form

1. Click "Add a new account" button

2. Select account type from dropdown

3. System automatically generates account code

4. Enter account name and description

5. Set currency if multi-currency account

6. Configure bank account details if applicable

5. Edit Existing Accounts

📸 Image Placeholder: Edit account screen

1. Click the edit icon next to any account

2. Update account details as needed

3. Archive accounts that are no longer used

Tips and Best Practices

• Plan Your Structure: Think about how you want to categorize transactions before creating accounts

• Use Consistent Naming: Follow a pattern for account names to make them easy to find

• Don't Overcomplicate: Start with essential accounts and add more as needed

• Archive, Don't Delete: Keep historical data by archiving unused accounts

• Review Regularly: Ensure your chart of accounts still meets your business needs