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Chart of Accounts

The Chart of Accounts (COA) is the foundational structure used to organize and categorize all financial transactions in the system. It defines how financial data is recorded, grouped, and reported — enabling consistent records, accurate reports, and correct transaction mapping.

From the Chart of Accounts page you can view all accounts, create new ones, edit, manage, or merge existing accounts, organize accounts by type, and control account status and structure. The COA is referenced whenever financial transactions occur: recording invoices, logging expenses, processing payments, and generating reports.

Accessing Chart of Accounts​

  1. Navigate to the Accounting section from the sidebar.
  2. Click Chart of Accounts.
  3. The system displays a structured list of all configured accounts, one per row.

Understanding the table​

  • Account Code — a unique identifier assigned to each account.
  • Account Name — the display name.
  • Account Type — the category the account belongs to (Asset, Liability, Revenue, etc.).
  • Detail Type — the sub-classification within the main account type.
  • Basis — the accounting method used to recognize transactions for the account.
  • Actions — enable/disable and other account options.

Account types explained​

Account types define how transactions affect financial statements:

  • Assets — resources the organization owns that provide economic value: Cash, Bank Accounts, Accounts Receivable, Inventory, Equipment. Appear on the Balance Sheet.
  • Liabilities — obligations owed to external parties: Accounts Payable, Loans, Credit Card Balances, Accrued Expenses. Also on the Balance Sheet.
  • Equity — the owner's share after liabilities are deducted from assets: Owner's Equity, Retained Earnings, Capital Contributions.
  • Revenue — income from business operations: Product Sales, Service Income, Consulting Revenue. Appears on the Profit & Loss Statement.
  • Expenses — costs incurred while operating: Salaries, Rent, Utilities, Software Subscriptions, Marketing. Also on the P&L; reduce net profit.

Account hierarchy​

Accounts can be organized hierarchically for logical grouping and clearer reporting:

  • Parent accounts represent high-level categories (Assets, Liabilities, Revenue, Expenses) and typically summarize the totals of their subaccounts.
  • Subaccounts provide detailed tracking under a parent — e.g., Expenses → Salaries, Rent, Marketing, Software Subscriptions.

Benefits: improved organization, easier reporting and analysis, clear categorization, and simplified statement preparation.

Creating a new account​

  1. Click Add Account.
  2. Enter details: Account Type, Detail Type, Account Code (unique identifier), Account Name, optional Parent Account (to create it as a sub-account), and an optional Description.
  3. Click Save — the account appears in the list immediately.

Editing an account​

  1. Locate the account in the table.
  2. Click Edit in the options menu, or click the row directly.
  3. Update fields such as Account Name, Description, or Account Type.
  4. Click Save.

Managing account status​

  • Enabled accounts are available for transactions and included in financial reports.
  • Disabled accounts cannot be used for new transactions but are maintained for historical records — they remain visible for auditing and reporting.

Merging accounts​

Merge combines one account into another — useful for duplicates or consolidation. The source account is combined into the target so structure stays organized and reporting stays consistent.

Use merge when duplicate accounts exist, an old account needs consolidating into a current one, structures are being simplified, or similar accounts should live under a single record. The Detail Type must match for both accounts.

  1. Open the actions menu for the account you want to merge (the source).
  2. Select Merge Account.
  3. Choose the target account — the account that remains active after the merge.
  4. Review carefully: merging affects how account history and future usage are managed.
  5. Click Confirm. The merged account is no longer maintained as a separate active account.
caution

Merge only accounts that belong to the same financial category or purpose, and double-check the target account before confirming.

Best practices​

  • Structured account codes — keep numbering consistent across categories.
  • Avoid duplicates — ensure new accounts don't overlap with existing ones.
  • Clear naming — "Marketing Expenses" beats "Miscellaneous Costs".
  • Avoid excessive accounts — group similar transactions into logical categories while keeping sufficient detail.
  • Consistency across entities — if you manage multiple companies, keep COA structures consistent to simplify consolidated reporting.
  • Review periodically — remove unused accounts and keep the COA aligned with operations.