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Managing Your Chart of Accounts

A well-organized chart of accounts is the foundation of your financial management system. Ledgerflow provides powerful tools to create, organize, and manage your accounts for accurate financial reporting and analysis.

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Chart of Accounts Overview​

The Accounts module in Ledgerflow allows you to:

  • Create and organize your financial accounts
  • Track assets, liabilities, equity, income, and expenses
  • Customize account structures to match your business needs
  • Generate financial reports based on account data
  • Monitor account balances and transaction history

Account Types and Structure​

Ledgerflow organizes accounts into five main categories:

  1. Assets: Resources owned by your business (cash, inventory, equipment)
  2. Liabilities: Debts and obligations (loans, accounts payable)
  3. Equity: Owner's stake in the business (capital, retained earnings)
  4. Income: Revenue from sales and other sources
  5. Expenses: Costs incurred in running your business

Each category can contain multiple account groups and individual accounts in a hierarchical structure.

Adding a New Account​

Follow these steps to add a new account to your chart of accounts:

  1. Navigate to the Accounts tab on the left sidebar menu

  2. Click the Add Account button in the top right corner

  3. Complete the following information:

    Basic Information​

    • Account Name: Descriptive name for the account
    • Account Code: Unique identifier for the account
    • Account Type: Select from Assets, Liabilities, Equity, Income, or Expenses
    • Parent Account/Group: Optionally place under a parent account or group
    • Description: Additional details about the account's purpose

    Account Settings​

    • Is Sub-Account: Check if this is a sub-account of another account
    • Status: Active or Inactive
    • Tax Code: Associate with a specific tax code if applicable
    • Currency: Default currency for the account

    Opening Balance (if applicable)​

    • Opening Balance: Initial balance for the account
    • As of Date: Date of the opening balance

  4. Click Save to create the account

Creating Account Groups​

To better organize your accounts:

  1. Navigate to the Accounts tab
  2. Click Add Group
  3. Enter the group name and select the account type
  4. Choose a parent group if applicable
  5. Click Save to create the group

Viewing and Managing Accounts​

The Accounts list view provides a comprehensive overview of your chart of accounts:

  • Search: Quickly find accounts by name or code
  • Filter: Filter accounts by type, status, or balance
  • Sort: Arrange accounts by name, code, or balance

Account Detail View​

Click on any account to access its detailed information:

  • Overview: See account details and current balance
  • Transactions: View all transactions posted to this account
  • Reports: Generate account-specific reports

Editing Account Information​

To update an account's information:

  1. Navigate to the account in your chart of accounts
  2. Click the Edit button
  3. Update the necessary information
  4. Click Save to apply your changes

Financial Reports​

Ledgerflow generates several financial reports based on your chart of accounts:

  • Balance Sheet: Shows assets, liabilities, and equity at a point in time
  • Profit & Loss: Shows income and expenses over a period
  • Trial Balance: Lists all accounts with their debit or credit balances
  • General Ledger: Detailed record of all transactions by account

Best Practices for Account Management​

  • Create a logical, consistent account naming and numbering system
  • Keep your chart of accounts as simple as possible while meeting your needs
  • Regularly review and clean up unused or redundant accounts
  • Ensure account classifications are correct for accurate financial reporting

Coming Soon Features​

Future Functionality

The following features are planned for future releases and are not currently available in Ledgerflow:

  • Account Reconciliation: Tools to reconcile bank and other accounts with statements
  • Advanced Account Templates: Industry-specific account templates
  • Multi-Currency Support: Enhanced handling of multiple currencies
  • Budget vs. Actual: Compare actual results to budgeted amounts by account
  • Custom Financial Reports: Create customized reports based on your accounts