Starting a new business or running a solopreneur operation can feel overwhelming—especially when you open your accounting software and see dozens of accounts you might never use.
Fynlo’s default chart of accounts is designed for general businesses, but as a new entrepreneur or solopreneur, you can simplify it. By keeping only what matters, renaming accounts to match your work, and disabling the rest, you’ll save time, reduce errors, and make bookkeeping easier.
This guide shows which accounts to keep, rename, or disable for a lean, solopreneur-friendly setup.
Step 1: Assets – Keep What Matters
Track the money coming in and out of your business with these essential accounts:
☑ Bank – Your main operating account
☑ Cash – Physical cash or petty cash
☑ Accounts Receivable – Track client invoices
☑ Undeposited Funds – Optional if you track deposits manually
☐ Deposit – Optional if recording client deposits
❌ Disable: Inventory accounts, Leasehold Improvements (unless renting an office space)
Step 2: Liabilities – Keep Only If Applicable
Most solopreneurs don’t have complex liabilities. Keep these if needed:
☑ Accounts Payable – Track unpaid bills
☑ Unearned Revenue – If clients pay upfront
☑ Sales Tax (GST/VAT) – Only if registered
☑ Income Tax Payable – Track your tax obligations
❌ Disable: Accrued Purchases, Salary Payable, Manufacturing Overhead
Step 3: Equity – Keep It Simple
Equity accounts usually stay standard:
☑ Share Capital – No changes needed
☑ Retained Earnings – No changes needed
Tip: Leave these untouched—they track your ownership and accumulated profits.
Step 4: Income – Rename for Solopreneurs
Rename income accounts to reflect the services you provide:
| Default Account | Suggested Name | Action |
|---|---|---|
| Sales | Service Income / Consulting Income / Coaching Income / Retainer Income | ☑ Keep |
| Other Income | Keep relevant categories | ☑ Keep |
| Interest Earned | Keep | ☑ Optional |
| Gain/Loss on FX | Keep if invoicing internationally | ☑ Optional |
| Sales Return | Disable | ❌ |
Tip: Clear naming helps you see exactly where your income is coming from.
Step 5: Cost of Goods Sold – Only If You Subcontract
Keep these accounts only if you hire freelancers, subcontractors, or resell materials:
☑ Cost of Goods Sold – For subcontracted work or materials
☑ Purchases – Same as above
☑ Purchase Return – Same as above
❌ Disable if you work solo and don’t resell materials.
Step 6: Expense Accounts Solopreneurs Actually Use ✅
Focus on expenses that are relevant for your small, personal business:
☑ Software/Subscriptions – Tools for your business
☑ Marketing & Advertising – Promote your services
☑ Telephone – Business phone line
☑ Travel – Client meetings or business trips
☑ Meals & Entertainment – Only business-related meals
☑ Utilities – Keep if home office (internet, electricity)
☑ Rent – Coworking or office space
☑ Accounting & Audit Fees – Professional services
☑ Insurance – Liability or professional insurance
☑ Bank Charges – Account and payment fees
☑ Stripe Fee – Payment processing costs
☑ Bad Debt – Clients who don’t pay
☑ Miscellaneous Expenses – Small uncategorized costs
❌ Disable: Manufacturing Overhead, Freight In/Out, Workers’ Compensation (if solo), Inventory Adjustment / Finished Goods Inventory, Cleaning (unless office), Write-Off Fixed Assets (if no assets)
✅ Pro Tips for New Entrepreneurs & Solopreneurs
Start simple – Only keep accounts you will actually use
Rename accounts – Match your services for clarity
Disable unnecessary accounts – Keep your chart clutter-free
Review regularly – As your business grows, you may need new accounts
Customizing your Chart of Accounts in Fynlo makes bookkeeping straightforward, so you can focus on building your business without drowning in accounting details.