Chart of accounts¶
Your chart of accounts is the list of categories that every invoice, expense and bill line is classified against. It is what turns your day-to-day records into meaningful reports.
In the sidebar it is labelled Accounts.
What an account is for¶
Every time you raise an invoice, record an expense, or enter a bill line, you choose an account for it. That account is the primary classifier: it decides where the amount lands in your Profit and Loss, and (if you are registered for GST) it sets the default GST treatment for that line.
Because the account does the classifying, you do not need to categorise things by hand. The old free-text "category" is now just an optional Tag for your own labelling.
Setting up your accounts¶
When your organisation has no accounts yet, you will see two choices:
- Load Default Accounts adds around 30 accounts tailored for Australian sole traders and small businesses (bank account, GST accounts, sales revenue, office supplies, motor vehicle, bank fees, and more). This is the quickest way to start.
- Start from Scratch lets you build your own list one account at a time.
Tip
Most people should choose Load Default Accounts. You can rename, add to, or deactivate any of them later, so nothing is locked in.
What each account has¶
| Field | Description |
|---|---|
| Code | A short number, for example 6-0100. Accounts are sorted by code. |
| Name | What the account is called, for example "Office Supplies". |
| Type | One of Asset, Liability, Equity, Revenue, Cost of Sales, or Expense. |
| Tax treatment | Only shown if you are registered for GST. Sets the default GST handling for lines coded to this account. |
| Description | An optional note about what belongs in the account. |
Account types¶
Accounts are grouped by type on the page:
- Asset: things you own, such as your bank account.
- Liability: things you owe, such as GST collected or accounts payable.
- Equity: owner's funds, drawings and retained earnings.
- Revenue: money you earn, such as sales revenue.
- Cost of Sales: direct costs of the work you sell, such as subcontractor costs.
- Expense: your running costs, such as rent, insurance and phone.
Tax treatments¶
If you are registered for GST, each account can carry a tax treatment:
| Treatment | Meaning |
|---|---|
| GST Inclusive | The line includes 10% GST (the usual case). |
| GST Free | No GST applies, for example bank fees and some insurance. |
| GST Exclusive | The amount is before GST. |
| BAS Excluded | Kept out of your BAS entirely, for example depreciation. |
| Input Taxed | A special treatment for certain income and expenses. |
When you pick an account on an expense or bill line, its tax treatment sets the line's GST for you. You can still override it. See GST on expenses.
Note
If your organisation is not registered for GST, the tax treatment column is hidden and GST is not tracked.
Which accounts appear where¶
When you record an expense or a bill line, the account picker offers only your Expense and Cost of Sales accounts, since those are what money going out is coded to. Invoices draw on your Revenue accounts.
Editing and deactivating accounts¶
You can edit an account's name, description and tax treatment at any time.
Deleting an account deactivates it rather than removing it. A deactivated account stops appearing in dropdowns, but any invoices, expenses and bills already coded to it keep their account and their history stays intact. Accounts are never permanently deleted, so your past reports never change under you.
Use the filter buttons at the top of the page to Hide unused accounts or to Show deactivated ones.