The chart of
accounts is divided into the five main account categories.
They are assets, liabilities, equity, income and expense
accounts. You can also review all accounts by selecting the all tab.
1. Asset Accounts - things of value owned by the business.
2. Liability Accounts - amounts owed to outsiders.
3. Owner's Equity Accounts - amounts owed by the
business to its owners (profit). If the
business loses money the owners may owe
additional money to the business.
4. Revenue Accounts - Sources of income.
5. Expense Accounts - Payments necessary to run the business.
To add an account select the icon on the plus icon on the tool
bar found on the top of the screen.
A general ledger account is a combination of the account number
and the department. You can use the same account number for a different account
if you have a different department for each account. The power is in essence the ability to have accounts
instance you can have an account called Sales numbered 5000 with
department 10 for Retail and another sales account number 5000 but
with department called 20. Review
the following examples to explain best.
Cost of Goods Sold –Retail
Cost of Goods Sold – Service
This ability is
great because it allows you the capability to perform department and
consolidated reporting for financial reports.