Your Chart of Accounts is the list of all accounts that your business needs to categorize the various transactions.
Learn by watching
Watch how to set up your Chart of Accounts or read on below.
Types of accounts
The Chart of Accounts is a list of accounts that your company needs for recording transactions.
There are five types of accounts, and each have further subtypes:
- Other income
- Cost of Goods Sold (COGS)
- Operating Expense
- Non-Operating Expense
- Cash and Cash Equivalents
- Current Asset
- Non-Current Asset
- Fixed Asset
- Currenty Liability
- Non-Current Liability
- Retained Earnings
- Accumulated Other Comprehensive Income
- Treasury Stock
- Opening Balance Equity
- Owner's Equity
What do the rest of the columns in the chart of accounts represent?
|The parent account of the account. Makes the account a sub-account.|
|When the column is set to yes the account will show up in drop-down menus when recording payments.|
|The debit or credit balance of the account.|
|The type of cash flow activity for the account: |
|If this column is enabled, employees will have the option to choose this account when submitting their expense claims.|
How do I customize the chart of accounts for my business?
If you want to modify the standard chart of accounts offered by Wafeq, or create additional accounts, right-click on any row, then choose
Insert row. In the account's
Name column, give your account a name. From the
Type drop-down menu, choose your account’s type.
If you want to delete accounts, right-click on the account you want to delete, and then delete the row.
Can't delete an account?
You won't be able to delete an account if:
- It is a system account. System accounts are reserved for Wafeq's internal system. You cannot delete them.
- The account is a bank account. To delete a bank account, you must do it from the
- The account has transactions. You must remove the transactions from the account before you can delete it.