Chart Of Accounts
This topic explains how to add, edit, inactivate, or delete an account from your Chart of Accounts list.
Accounts are used to indicate and summarize the increases or decreases to and balances of each asset, liability and owner’s equity-type items, such as, capital, withdrawals, revenues and expenses. An example of an account may be Credit Card fees, rent, gasoline, cost of goods sold, etc.
Financial accounts track your business transactions. The Chart of Accounts classifies the nature of an accounting transaction. Use this List to create a new account or select an account to edit, delete, and inactivate. You have the ability to filter and sort these records in many different ways.
You will probability want to add new accounts as your business grows and changes. Example: If you never accepted credit cards, but you do now, you would want to set up an account for credit card transactions.
The account numbering system in Total Office Manager has approximately 10 numbers in between each account number that can be used for new accounts.
10010 Cash in Bank- Operating Account
10020 Cash in Bank- Payroll Account
If you needed to set up a new Cash Account, you could assign 10015 Cash in Bank- Petty Cash Account.
If you want to make this account a sub-account of another account, select the account from the drop down menu and select the account that would be the higher-level account for this sub-account.
If a particular account in COAs seems to cover too much, you can divide the account into one or more sub-accounts. Sub-accounts let you track several related types of income or expenses independently yet keep them all under the all-inclusive of a single parent account.
In the parent account “Phone” you might want to set up sub-accounts for cell phones, local phone service, long distance service, toll free phone service, and pagers. You could then track how much your company spends on long distance, cell phones, etc. individually, but still have the ability to know exactly how much you pay out in the utility ‘Phone”.
The “New COA” form is accessed from the COA list. From the main menu, click Banking > Chart of Accounts List.
The numbering system used to track accounts.
The name given to the account: Payables, Receivables, Asset, Labor, MESO.
Type of account: Income, Liability, COGS, Expense, Income, Equity, etc.
The balance of each account.
The balance of each account as a parent child relationship. Parents will include their balance plus the balance of their children.
An explanation of what the account would be used for. This takes the guesswork out of which account should I use for this transaction”.
To Save (when in the New Account form or the Edit Account form).
Saves then opens a blank New Account form (when in the New Account form or the Edit Account form).
- To edit an existing account, highlight the account then select Chart of Accounts List > Edit Account.
- To create a new account, highlight the account then select Chart of Accounts List > New Account.
- To delete a new account, highlight the account then select Chart of Accounts List > Delete Account..
- To inactivate an account, highlight the account then select Chart of Accounts List > Make Account Inactive.
- You can delete or inactivate multiple accounts. To highlight multiple records, press and hold your Ctrl key and click each account. You may also select a range of accounts by highlighting the first record in that range, press and hold your left Shift Key, and click the last record in that range.
- You can select an account and right click for common tasks.
- We generally recommend that you avoid deleting accounts. You should use the Inactivate or Void option instead.
- Accounts: Are systematically arranged according to assets, liabilities, equities, income, and expenses.
- There are two main types of accounts in Total Office Manager’s chart of accounts used for tracking: Balance Sheet Accounts, Income and Expense Accounts
- Use expense accounts to track reimbursed expenses as income.
- Chart of Accounts Types used in Total Office Manager: Accounts Payable, Accounts Receivable, Bank, Cost of Goods Sold, Credit Card, Equity, Expense, Fixed Asset, Income, Long Term, Liability, Other Asset, Other Current Asset, Other Current Liability, and Other Expense