Set Up Your Chart of Accounts

Setting up your Chart of Accounts helps organize your financial data to make it easier to track and manage transactions. It allows you to categorize financial activities, which helps to produce accurate financial reports, like income statements and balance sheets.

A clear account structure streamlines the understanding of your business's financial health and ensures everything is properly accounted. Whether you’re creating your Chart of Accounts for the first time or revising an existing setup, it provides the foundation for clear financial management and reporting.

To Set Up Your Chart of Accounts:

1. Click on your organization’s logo from the bottom left corner.

1. Select Organization Settings > Chart of Accounts.

2. Click + Add Account at the top-right of the page.

   
3. Enter the account details:

   • Number: Assign the account number (e.g., "1000").

   • Name: Enter a specific and descriptive account name. (e.g., "Bank Account").

   • Type: Select the account type from the dropdown menu. Options include:

     • Asset

     • Equity

     • Expense

     • Liability

     • Income

4. Subtype: The options depend on the selected type.

Type	Subtype Options
Asset	Accumulated Depreciation, Allowance for Doubtful Accounts, Bank, Deferred Commissions, Fixed Assets, Other Assets, Other Current Asset, Prepaid Expense
Equity	Accumulated Other Comprehensive Income, Additional Paid In Capital, Equity, Equity, Compensation
Expense	Cost of Goods Sold, Non Operating Income, Non Operating Expense, Operating Expense, Operating Expense – Commissions, Operating Expense – Office Expenses, Operating Expense – Personnel, Operating Expense – Sales & Marketing
Liability	Accrued Expense, Credit Card, Customer Deposits, Debt, Lease Liability, Other Current Liability, Other Long Term Liability
Income	Revenue

1. Optional fields (if applicable):

   • Prepaid Account: Appears if Type is Expense

   • Parent Grouping: Use this to organize the account in categories (e.g., group multiple bank accounts under "Assets").

   • Link to a connected bank account: Select one of your bank accounts to connect to the one you are creating. Appears if:

     • Type is Asset and Subtype is Bank.

     • Type is Liability and Subtype is Credit Card.

2. Click Save to create the account to complete the process.

   

After creating the account, you will see a message stating “Account created” confirming that the account has been saved correctly.

See also:

• Manage Account Groupings

• Deactivating an Account

• Best Practices to Structure your Chart of Accounts