The chart of accounts is the backbone of your accounting system. From /finance/accounting/chart-of-accounts you define all the accounts used in your journal entries and financial reports.
Accounts are organized in a tree structure with parent-child relationships. Top-level accounts group categories, while sub-accounts contain the operational detail.
Example hierarchy:
1000 Assets
├── 1100 Current Assets
│ ├── 1101 Cash
│ ├── 1102 Bank Accounts
│ └── 1103 Accounts Receivable
└── 1200 Fixed Assets
├── 1201 Furniture & Equipment
└── 1202 Computer Equipment
Each account belongs to one of five main types:
| Type | Normal Balance | Examples |
|---|---|---|
| Assets | Debit | Bank accounts, inventory, receivables |
| Liabilities | Credit | Suppliers, loans, taxes payable |
| Equity | Credit | Share capital, retained earnings |
| Income | Credit | Sales revenue, other income |
| Expenses | Debit | Payroll, rent, utilities |
Within each type you can assign a more specific subtype for greater granularity in reports.
Navigate the tree to the level where you want to create the new account, or click New Account to create it at root level.
Enter the account number, descriptive name, type, and subtype. If the account will have sub-accounts, mark it as a group account.
Select the parent account to place it correctly in the hierarchy. Root accounts do not require a parent.
Confirm creation. The account will be immediately available for use in journal entries.
Accounts with transactions
You cannot delete an account that already has recorded transactions. Instead, you can deactivate it so it no longer appears in new entry selectors.
Tip
Use a consistent numeric scheme (for example, 4 digits) from the start. This makes it easier to expand your chart as your business grows.
The top search bar lets you find accounts by number or name. Results display their full path in the hierarchy to avoid confusion between accounts with similar names.