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NH1980's avatar
NH1980
User
2 years ago
Solved

Is there a summary of what account category to select please?

Hi,

Most are obvious like sales, advertising & marketing etc but is there a summary of all of the categories and when to use them?

Thank you

  • Tracey_H's avatar
    Tracey_H
    2 years ago

    Hi NH1980 

     

    Yes, those are accounts and are listed in Accounting>>Chart of accounts. There are the account classifications that I listed previously. You can create your own detail accounts or use the ones already set up to allocate transactions to.

     

    For example:

    If you have two bank accounts you can create an assest account for each bank account:

    1-1100 - Everyday bank account

    1-1200 - Savings bank account

     

    If your business was selling water you could set up income accounts to track the income for the different types:

    4-1100 - spring water

    4-1200 - carbonated water

     

    The accounts you allocate transactions to determines the financial reporting of your business, as such, if you're not sure it is recommended that you discuss this with your accountant.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    2 years ago

    Hi NH1980 

     

    Thanks for your post. If you're refering to the Chart of accounts the basic classifications are:

    • 1-xxxx Asset
    • 2-xxxx Liability
    • 3-xxxx Equity
    • 4-xxxx Income
    • 5-xxxx Cost of sales
    • 6-xxxx Expenses
    • 8-xxxx Other income
    • 9-xxxx Other expenses

    The Help Article, Accounts List, has detailed information on each of those classifications. If you're not sure which account to allocate transactions to you would need to check with your accountant.

     

    If I have misunderstood your question or you need further help please let me know.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

    • NH1980's avatar
      NH1980
      User
      2 years ago

      Thank you.

      It's a drop down menu and says

      + Creat account

      4-1400 Sales

      8-0060 Government subsidies

      etc etc

      Is that what you meant?

      Regards

      Nat

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        2 years ago

        Hi NH1980 

         

        Yes, those are accounts and are listed in Accounting>>Chart of accounts. There are the account classifications that I listed previously. You can create your own detail accounts or use the ones already set up to allocate transactions to.

         

        For example:

        If you have two bank accounts you can create an assest account for each bank account:

        1-1100 - Everyday bank account

        1-1200 - Savings bank account

         

        If your business was selling water you could set up income accounts to track the income for the different types:

        4-1100 - spring water

        4-1200 - carbonated water

         

        The accounts you allocate transactions to determines the financial reporting of your business, as such, if you're not sure it is recommended that you discuss this with your accountant.

         

        Please let me know if you need further help.

         

        If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.