A chart of accounts is a list of accounts used by a business to categorize transactions. It is used to organize a business’ finances and to track income, expenses, assets, and liabilities to give stakeholders a better understanding of the company’s financial health.
When you create an account in Cashflow, the system creates a new copy of a sample chart of accounts for your business. You can make changes according to your business needs.
Adding new accounts
To add a new account to the chart of accounts,
Add a new account
- In the main menu, go to Accounting, then Chart of Accounts.
- In the Chart of Accounts, click on the (+) Button.
- In the New Account window, choose the Control Account and enter the Number, Title, and Description.
- Set if you want this account to be a control account.
- Choose if you want to allow it to receive transactions.
- When done, click on Save.
Take note, each module in the system that posts entries to the journal includes auxiliary accounts by default in the accounts chart, so you don’t have to create those.
When you add a warehouse or a new bank account, the system creates the necessary ledger accounts, however, if you need to change this definition, you can do so by going to Settings > Modules> Accounting > Account Mapping.
