Chart of Accounts

The Chart of Accounts is the foundation of your bookkeeping system. It defines the structure of accounts used to record all financial transactions. Every journal entry, invoice payment, and expense is posted to one or more accounts in the chart.

Accessing the Chart of Accounts

Navigate to Dashboard > Accounting > Bookkeeping > Chart of Accounts.

Overview Statistics

Three summary cards appear at the top of the page:

Card	Description
Total Accounts	The total number of accounts in your chart, including both active and inactive.
Active Accounts	The number of currently active accounts available for posting transactions.
Inactive Accounts	The number of deactivated accounts no longer available for new transactions.

Account Types

Every account belongs to one of five fundamental types based on the accounting equation:

Type	Badge Color	Description	Normal Balance
Asset	Blue	Things your business owns (cash, receivables, inventory, equipment).	Debit
Liability	Red	Things your business owes (payables, loans, taxes due).	Credit
Equity	Purple	Owner's stake in the business (capital, retained earnings).	Credit
Revenue	Green	Income earned from business operations (sales, service revenue).	Credit
Expense	Orange	Costs incurred to run the business (rent, payroll, utilities).	Debit

Account Sub-Types

Each account type has specific sub-types that further classify the account:

Asset Sub-Types

Sub-Type	Description
Current Asset	Short-term assets expected to be converted to cash within one year.
Fixed Asset	Long-term tangible assets (property, equipment, vehicles).
Bank	Bank account balances.
Cash	Physical cash and cash equivalents.
Accounts Receivable	Money owed to you by customers.
Inventory	Goods held for sale or use in production.
Prepaid	Expenses paid in advance (prepaid rent, insurance).
Other Asset	Any asset not fitting the above categories.

Liability Sub-Types

Sub-Type	Description
Current Liability	Short-term obligations due within one year.
Long-term Liability	Obligations due beyond one year (long-term loans, bonds).
Accounts Payable	Money you owe to suppliers.
Tax Payable	Taxes owed to government authorities.
Other Liability	Any liability not fitting the above categories.

Equity Sub-Types

Sub-Type	Description
Owner Equity	Owner's investment in the business.
Retained Earnings	Accumulated profits not distributed as dividends.
Share Capital	Capital raised through issuing shares.
Other Equity	Any equity item not fitting the above categories.

Revenue Sub-Types

Sub-Type	Description
Sales	Revenue from selling goods.
Service Revenue	Revenue from providing services.
Interest Income	Income earned from interest on deposits or loans.
Other Income	Any revenue not fitting the above categories.

Expense Sub-Types

Sub-Type	Description
Cost of Goods Sold	Direct costs of producing goods sold.
Operating Expense	General business operating costs.
Payroll	Employee salaries, wages, and benefits.
Rent	Rental costs for office, warehouse, or retail space.
Utilities	Electricity, water, internet, and similar services.
Depreciation	The reduction in value of fixed assets over time.
Other Expense	Any expense not fitting the above categories.

The Tree View

The chart of accounts is displayed as a hierarchical tree view. Parent accounts contain child (sub) accounts, and you can expand or collapse branches to navigate the structure.

Each row in the tree shows:

Column	Description
Expand/Collapse	An arrow toggle to expand or collapse child accounts. Only shown for accounts that have children.
Code	The account code in monospace font (e.g., 1000, 1100, 2000).
Name	The account name.
Type	A color-coded badge showing the account type (Asset, Liability, Equity, Revenue, Expense).
Balance	The current balance of the account, formatted in your configured currency.
Actions	Edit (pencil icon) and Deactivate (ban icon) buttons.

Inactive accounts appear with reduced opacity.

Searching the Tree

Use the search bar above the tree to filter accounts by code, name, or type. The tree automatically shows matching accounts and their parent hierarchy.

Expanding and Collapsing

• Expand All button -- Expands all branches in the tree, showing every account.
• Collapse All button -- Collapses all branches, showing only top-level accounts.
• Click the arrow on any individual account to toggle its children.

Creating an Account

Click Add Account

Click the Add Account button in the page header. A dialog window opens.

Fill In Account Details

Field	Required	Description
Code	Yes	A unique alphanumeric code for this account (e.g., 1000, 1100, 5010). Typically follows a numbering convention where the first digit indicates the type (1=Assets, 2=Liabilities, etc.).
Name	Yes	A descriptive name for the account (e.g., "Cash on Hand", "Accounts Receivable", "Sales Revenue").
Type	Yes	The account type: Asset, Liability, Equity, Revenue, or Expense. Changing the type resets the sub-type selection.
Sub-Type	No	A more specific classification within the selected type. The available sub-types change based on the type selected.
Normal Side	No	Whether this account normally has a Debit or Credit balance. Defaults to "Debit". This is automatically suggested based on the type (assets and expenses are debit; liabilities, equity, and revenue are credit).
Parent Account	No	Select a parent account to nest this account under. Choose "None (Top Level)" for a root-level account. The dropdown shows all active accounts with their code and name.
Description	No	An optional text description explaining the purpose of this account.

Save

Click Add Account to create the account. It appears in the tree immediately.

Editing an Account

Click the pencil icon on any account row. The same dialog opens pre-filled with the account's current values. Make your changes and click Save Changes.

Deactivating an Account

Click the ban icon on an active account row. A confirmation dialog appears. Deactivated accounts:

• Are no longer available for selection when creating journal entries or other transactions.
• Remain in the chart of accounts with reduced opacity for historical reference.
• Retain their balance and transaction history.

Warning: Deactivating an account does not delete any transactions posted to it. All historical data is preserved. If you need to reactivate an account, edit it and set it back to active.

Seeding Default Accounts

If you are setting up your chart of accounts for the first time, you can use the Seed Default Accounts button to automatically create a standard set of accounts. This creates a common structure including:

• Asset accounts (Cash, Bank, Accounts Receivable, Inventory, etc.)
• Liability accounts (Accounts Payable, Tax Payable, etc.)
• Equity accounts (Owner's Equity, Retained Earnings)
• Revenue accounts (Sales Revenue, Service Revenue, etc.)
• Expense accounts (Cost of Goods Sold, Operating Expenses, Payroll, Rent, etc.)

Info: Seeding default accounts is safe to run even if you already have some accounts. It will add the default accounts without overwriting existing ones. However, duplicate codes may cause conflicts, so it is best used on a fresh chart of accounts.

Account Numbering Conventions

While the system does not enforce a specific numbering scheme, the following convention is commonly used:

Range	Type	Examples
1000-1999	Assets	1000 Cash, 1100 Bank, 1200 Accounts Receivable
2000-2999	Liabilities	2000 Accounts Payable, 2100 Tax Payable
3000-3999	Equity	3000 Owner's Equity, 3100 Retained Earnings
4000-4999	Revenue	4000 Sales Revenue, 4100 Service Revenue
5000-5999	Expenses	5000 COGS, 5100 Operating Expenses, 5200 Payroll

Using a consistent numbering scheme makes it easier to find accounts, sort reports, and understand your financial structure at a glance.

Tips for Setting Up Your Chart of Accounts

• Start with the seed defaults and customize from there. It is faster than building from scratch.
• Use parent-child relationships to group related accounts. For example, have a parent "Bank Accounts" with children for each individual bank account.
• Keep account names descriptive but concise. "Office Supplies" is better than "General Expense Category 3".
• Match your chart to your reporting needs. If you need to report on specific expense categories (e.g., Marketing vs. R&D), create separate accounts for each.
• Avoid creating too many accounts. Start with a manageable structure and add accounts as needed. An overly granular chart creates unnecessary complexity.
• Use sub-types to classify accounts for automated categorization in financial reports.