To see your list of General Ledger accounts:
- Click on Admin View/ General Ledger / Account Setup
We will not delve into a discussion of which GL accounts your business requires. Your bookkeeper or accountant will be your best resources for answers in this matter. However, we can safely say that you will want to create an account for each of your bank accounts.
To create an account:
- Click the Add Account hyperlink at the top
- Enter an account name and description.
- Choose the appropriate Account Type and Subtype
- Select a GIFI code from the drop-down list (Canada Only). (There are several codes to choose from. Choose the code that most closely matches the purpose of the account.)
- Choose the currency of the account.
- Click the Add Account button.
Repeat the above four steps for each account you wish to add.
The Cash Accounts that you create (GIFI Codes 1000 through 1005) will appear in the drop-down list when you are entering Invoices.
You will also want to create an expense account for each area where your business spends money on its day-to-day activities. Typical expense accounts might include:
- Utilities (Heat, water, energy, telephone, or internet services)
- Office Expenses (paper, pens, etc.)
- Delivery charges (courier services, postage, etc.)
- Bank Charges (account fees, service fees, etc.)
- Interest charges (loan interest, credit card interest, etc.)
- Marketing Expenses (Advertising, printed materials, etc.)
For any type of account you wish to create, the above four steps apply.
Some things to remember about your chart of accounts:
- You can not delete any default accounts. If the account does not have a [X] hyperlink beside it, then it can not be deleted.
- You can rename the default accounts to suit your needs.
- You can delete any accounts that you've accidentally created.
- You can not delete any accounts that have transactions posted to them, as this would damage your firm's audit trail.