Planning your Chart of Accounts

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Plan your Chart of Accounts according to the following guidelines:

Increment each account number by either 5 or 10 to cater for future additions.

If possible, list your accounts in alphabetical order.

Group similar accounts in similar predefined ranges e.g. 600 - 699 for Fixed Assets.

List your accounts in the order in which you would like them reported.

TurboCASH allows for 999 main accounts. Each account may also have up to 999 sub-accounts. This should be enough for most businesses.

Some Sets of Books may contain 4-digit main, and 5-digit main accounts. The option to Create a Set of Books (Advanced) on the Creation Wizard (File  →  Create Set of Books menu), allows you to create your own Set of Books from scratch. This will then ask you to specify the number of digits for accounts (from 3 to 8-digits). You need to enter the following 3 control accounts;

 Retained Earnings / Income.

 Creditor's Control Account.

 Debtor's Control Account.

The following ranges (based on the 3-digit main account codes) are an example that you should try to follow. It is NOT the Chart of Accounts you will be using - it is merely a guide as to the ranges.

Description

Range

Group

Total Chart

001-999


 Income

001-099

 Income

 Expenses

200-499

 Expenses

 Capital

500-599

 Capital

 Fixed Assets

600-699

 Fixed Assets

 Current Assets

700-899

 Current Assets

 Current Liabilities

900-999

 Current Liabilities

 Tax Codes for Tax main account

850-860

 Current Liabilities

 Bank Account + Positive balance

810

 Current Assets

 Bank Account  Negative balance (O/D)

910

 Current Liabilities

In the Edit  →  Accounts menu you may create, edit, delete accounts (general ledger, bank and tax) as well as enter and edit budget figures for accounts.

When creating or editing accounts you need to link the accounts to Account Groups 1 and / or Account Group 2. These Account Groups must be linked to Financial Categories.

The Edit  →  Accounts menu allows you to create Reporting Groups and link these Account Groups to Financial Categories for the Balance Sheet (i.e. Assets, Capital, Liabilities) and Financial Categories for the Income Statement (i.e. Income and Expenses).

In addition to this, you may create Account Group 1 and / or Account Group 2 in the Setup  →  System parameters  →  Groups menu and link them to the Financial Categories. These Account Groups may also be linked to Financial Categories in the Setup  →  System parameters  →  Financial Categories menu.

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