Account groups

You may set up to two (2) Reporting groups for your General ledger accounts. The following two (2) options are available:

1.Action → Accounts.

2.Setup → Groups.

These Account groups should represent the further grouping or division of your Income, Expenses, Capital, Assets and Liabilities, i.e. Financial categories or the main classification of the Accounts in the Accounting equation.

The five (5) main groups of the Financial categories are usually further divided into Account groups. e.g.

1. - Income - Income from normal business activities, e.g. sales, consulting, etc. and Other income received such as interest, etc.

2. - Expenses - Expenses incurred during normal business activities, e.g. rent, cleaning, etc. and Expenses of a Capital nature.

3. - Capital - The contribution/s or investment from the owner/s. The groups you may wish to enter, would depend on the type of ownership for the business, e.g. Company, Close Corporation, Partnership or Sole Proprietorship.

4. - Assets - Fixed assets (Immovable assets) and Current assets (Movable assets)

5. - Liabilities - Long-term liabilities and Current liabilities.

You may create any number of groups to meet your requirements. These Account Reporting groups are used to structure the layout of the Income statement and Balance sheet. You may also select to print General ledger transaction reports only for those accounts which are linked to a specific reporting group, e.g. Fixed assets, Current assets, etc.

After setting up your Account groups, you need to link these Account groups to the correct Financial categories. The following two (2) options are available:

1.Action → Accounts.

2.Setup → Setup → Financial categories.

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