The Chart of Accounts serves as the backbone of the accounting system, providing a structured list of all financial accounts. These accounts help track and classify every transaction, ensuring accuracy and clarity in financial reporting.
Below are the steps to complete the process of Creating a Chart of Accounts.
Step 1: Navigate to Accounting, then click on Chart of Accounts.
Step 2: Under Chart of Accounts, locate + New Account on the upper right section of the screen and click it.
Step 3: Fill in Account Details:
- Name: Enter a descriptive name.
- Type: Select the appropriate type (e.g., Expense, Revenue).
- Description: Add relevant details about the account.
Step 4: Click Save to complete the process. This will make the entry available for transactions.
🔶Note: Once transactions are associated with an account, it cannot be deleted but can be deactivated if no longer needed.