Some accounts in your chart of accounts are present by default when you add a business and cannot be deleted. Others are activated as various tabs are enabled and remain unless the tab is disabled (which is only possible if no transactions have been entered within it). Still others are control accounts with subsidiary ledgers. When necessary, you can add an ordinary account to either your Balance Sheet or Profit and Loss Statement. These accounts stand on their own and are not dependent upon any other tab or account. Sometimes, they are referred to as custom accounts, because you customize them as required. Ordinary accounts offer more flexibility than automatic, control, or other built-in accounts.
Ordinary accounts are added under Settings Chart of Accounts:
Click on New Account on the Balance Sheet side of the chart of accounts:
Define the account:
Nameshould be a short description of the account’s purpose.
Codeis optional. See another Guide for more information on account codes.
Groupunder which the account will be reported. (Groups must be defined before accounts can be assigned to them.)
Cash Flow Statementlets you select the category where the account will be reported on the Cash Flow Statement report. Options include Operating activites, Investing activites, and Financing activities.
Some automatic or built-in accounts can only be reported under one category. In such cases, the
Cash Flow Statement menu does not appear.
Tax Codeif all or most transactions posted to this account will have the same tax code applied. For Balance Sheet accounts, this field is often left blank. The field will not appear unless at least one tax code has already been defined under Settings.
Starting balancetype and amount. These fields only appear if a start date has been set.
Click Create to save the new account.
Click on New Account on the Profit and Loss Statement side of the chart of accounts:
Define the account:
Fields available for Profit and Loss Statement accounts have the same purpose as similarly named fields for Balance Sheet accounts. A
Tax Code is more commonly selected for Profit and Loss Statement accounts than for Balance Sheet accounts, because income and expense transactions posted to them are more frequently subject to the same taxes. The
Tax Code field is, nevertheless, optional.
Click Create when finished.