Setting up your chart of accounts



When you create your company in Wafeq, you’ll find a pre-built chart of accounts that’s ready to use and categorized into the five main account types, each starting with a specific number that represents its category:

• Assets (Code 1)
• Liabilities (Code 2)
• Equity (Code 3)
• Revenue (Code 4)
• Expenses (Code 5)

These categories include sub-accounts, which can also be further divided into more detailed levels based on your business needs. Even though this chart comes preconfigured, it remains flexible; you can adjust it to fit your activity type.

In this guide, we’ll walk you through how to view, edit, and add accounts step by step, while also exploring the features you can activate to align your chart with your exact business requirements.

The Chart of Accounts Structure

The chart of accounts in Wafeq is organized into folders, where each main account groups its related sub-accounts, with color tags that help visually distinguish the primary categories.

To view the chart of accounts, click on “Chart of Accounts” under “Accountant” in the main menu, and you will find the following:

• You can expand or collapse sub-accounts under any main account by clicking the folder icon next to it.
• To view or edit a specific account’s details, click the “View Account Details” icon next to its name.
• A lock icon appears next to system accounts that Wafeq has restricted. These cannot be deleted, as they are essential for generating accounting reports.



System accounts and locked accounts

You may notice a lock icon 🔒 next to some accounts in the chart. This indicates that the account cannot be deleted either because it is a system account used in reports or it is linked to another element, such as an employee or a warehouse.

To view the full list of these accounts and understand why they cannot be deleted, refer to System accounts and locked accounts.

Automatic account numbering and how to edit it manually

Wafeq uses an automatic hierarchical numbering system for accounts. It starts with numbers like (1, 2, 3, 4) to represent the main account types, followed by sub-account numbers such as (41, 42), and more detailed levels like (401, 402, 404).

However, you can manually edit an account number to match your business needs or a specific numbering convention used in your company. To do so, click on the account number field and enter the new number based on your preferred sequence.

gif

Adding a new sub-account

To add a new sub-account, click the “Add Sub-Account (+)” button next to the account where you want the new account to be placed. The new sub-account will be created instantly and will appear with the default name “New Account.”



To rename the new account, simply click on its current name, type the desired name, and it will be saved automatically.

2g.gif

By clicking the three dots next to the account name and selecting “Edit Account”, you’ll access the default settings and information for the newly created account. These settings are mostly based on where the account was added in the chart.

You should first update the account name in both Arabic and English, replacing the default “New Account”. You can also edit any other details or account properties as needed.



Adding a sub-account as a bank or credit card account

In addition to standard sub-accounts, Wafeq allows you to add specialized accounts under "Assets" and "Liabilities" only; specifically, "Bank Accounts" under Assets and "Credit Card Accounts" under Liabilities.

These accounts are unique because creating one automatically generates a corresponding bank account in Wafeq. This allows you to track ledger transactions, view account statements, and perform reconciliations.

3g.gif

Viewing or Editing Account Details and Settings

To view account details, click the “View Account Details” icon next to it.

To edit the account, click the three dots next to the account name, then select “Edit Account” from the dropdown menu.



In both cases, you'll see the account’s default details and settings, most of which are based on where the account is placed within the chart, whether it's a system-generated account or one you created manually.

The account details include:

• Parent Account: The higher-level account to which this sub-account belongs. You can change it by selecting another option from the dropdown list.
• Name: This name appears in the chart of accounts, transactions, and financial reports. You can update it by simply entering a new name.
• Code: This is usually generated automatically, but you can modify it if you're following a custom numbering system.
• Cash Flow Type: This classification affects how the account appears in the cash flow statement. You can adjust the classification as needed.

How Can This Account Be Used?

• Allow posting to this account When enabled: ✅ The account can be selected in financial transactions such as invoices and manual journal entries. When disabled: ❌ The account serves for classification and organization only, and cannot be used in actual transactions.

• Enable account selection for payments When enabled: ✅ The account becomes available for selection in customer payments. When disabled: ❌ It cannot be used to record payments.

• Show account for employee expense claims When enabled: ✅ Employees can select the account when submitting expense claims. When disabled: ❌ The account will not appear as an option in employee claims.



If you wanted to update the Cash Flow Type, Customer Payment Usage, or Employee Expense Claim Availability for multiple accounts at once, and there's no need to open and edit each account individually.

Instead, update one cell, then click and drag it down the column to apply the same value to all selected rows.

4g.gif

Corporate Tax in the UAE

Wafeq makes it easy to calculate corporate taxable income. This includes assigning tax classifications to income and expense accounts directly from the chart of accounts.

To do this, first make sure that you've selected the UAE as your country when setting up your Wafeq account. Then, go to the "Chart of Accounts", and click “View Account Details” next to the relevant income or expense account.

From there, scroll to “Default corporate tax treatment”, choose the appropriate tax classification, and click “Save”.

To learn how corporate tax is applied in Wafeq, refer to Corporate Tax in Wafeq — A Practical Guide.

To understand Wafeq’s unique approach to corporate tax and how it differs from other systems, refer to Why Wafeq Is the Only Accounting System Built for UAE Corporate Tax.



Searching for an account in the chart of accounts

Type the account name or code into the search bar, then press Enter on your keyboard to display the result.



Deleting an account from the chart

To delete an account, click the three dots next to it, then select “Delete Account” from the dropdown menu.



A warning message will appear, and you’ll need to click “Confirm” to proceed.



Chart of accounts export

You can copy or download your chart of accounts by clicking the “Export” button within the chart page.

From the dropdown menu, select “To clipboard” to copy the data, or choose “CSV” or “Excel” to download it in your preferred format.