Components of an Account in Your Chart of Accountsadmin
There are several components of every account in your chart of accounts that you can use to learn more about the account.
- For each account code, you can use letters, numbers or symbols, up to 10 characters. Using this code you can group similar or frequently used accounts together in your chart of accounts. As long as the account code is unique, you can use it for any account.
- According to your needs, you can edit the information on any account. You can even change the account code but before this check with your accountant or bookkeeper if they have a preferred set of codes they want you to use.
- As you change the code in your chart of accounts, Clickentry moves the old data under the new code for all new reports. It won’t affect the published reports.
Name and Description
- The name of every account can use up to 50 characters.
- Here you can enter the description to all accounts except bank accounts. You just need to leave this field blank for the bank accounts. You can use letters, symbols, numbers for the description but make sure it should not exceed 200 characters. You can not use the symbols at the start of the description.
- The account name and description are editable.
Account Reporting Name
If you’re part of a partner practice, you can add reporting names to give your accounts a different display name in reports.
To open the Reporting Name field, click add Reporting Name under Name.
This name appears only on new reports and report templates. The option is available for all accounts except those with the account type ‘Bank’.
- There is an account type for each account in Clickentry. It is used to determine where the account will appear in your financial reports. In Clickentry, some account types are used for the specific purpose.
- If you change the account type then it may move the account to a different section on reports but it won’t affect the published reports.
- You can select the account type when you create a new account. You can change it any time by editing the account.
- If you want to change an account type to inventory then it’s not possible in Clickentry. This is to ensure that your inventory asset account matches the inventory reports when used with tracked inventory. You have to create a new account with the type inventory.
Account types in Clickentry are arranged in 5 categories:
|Assets||Non-current Asset Prepayment Inventory Current Asset Fixed Asset|
|Expenses||Depreciation Direct Costs Expense Overhead|
|Liabilities||Current Liability Non-current Liability|
|Revenue||Sales Other Income Revenue|
In Clickentry, there is a default tax rate for each account. It determines how Clickentry treats the transactions for sales tax purposes.
Clickentry applies default sales tax rates to each account in the Clickentry default chart of accounts. By default, these are all set to 0%. You can add or edit your own tax rates according to your tax requirements. If you create new accounts to the chart of accounts, you can choose the tax rate for them.
The default tax rates in Clickentry are:
- Tax Exempt (0%)
- Tax on Purchases (0%)
- Tax on Sales (0%)
- Sales Tax on Imports (0%)
Tax rates won’t be applied in Clickentry’s default chart of accounts if you have selected ‘None’ for your sales tax basis. Clickentry uses the tax rate of “No Tax” for the transactions you enter in Clickentry. If you later want to apply tax to your organization then you will have to edit accounts in your chart of accounts to apply the right default tax rate. To do this, you must talk to your accountant or bookkeepers.