Set Up Your Chart of Accounts
Your chart of accounts is the master list of categories — bank, receivables, revenue, rent, inventory, tax payable, and so on — that every transaction gets classified against. It's one of the first things to set up after enabling Accounting.
The three account levels
| Level | Use it for |
|---|---|
| Main accounts | Top-level groupings, like Assets or Expenses |
| Sub accounts | Reporting roll-ups underneath the main accounts |
| Transaction accounts | The specific accounts you actually post to on vouchers and documents |
You only post to transaction accounts day-to-day — main and sub accounts exist to organize your reports.
The five account types
| Type | Meaning | Examples |
|---|---|---|
| Assets | What you own or are owed | Bank, inventory, equipment, receivables |
| Liabilities | What you owe | Payables, loans, tax payable |
| Equity | The owners' stake | Capital, retained earnings |
| Income | What you earn | Sales, service fees |
| Expenses | What you spend | Rent, wages, cost of goods sold |
Create an account
- Go to Finance & Accounting → Main accounts (or Sub accounts / Transaction accounts, depending on the level you need).
- Click Add new.
- Choose the account type and, for sub or transaction accounts, the parent account it rolls up into.
- Give it a clear name and code.
- Save.
:::tip Good habits Search before creating a new account — duplicates make reports messy. If an account already has history against it, deactivate it instead of deleting it. :::