Purpose
The Accounts module (Chart of Accounts) is the foundational structure for all financial transactions in TRUE Accounting. It provides a complete listing of all general ledger accounts used to record and categorize business transactions, enabling accurate financial reporting across the balance sheet and income statement.
Foundation of Accounting: The Chart of Accounts defines how every financial transaction is categorized. Proper account setup ensures accurate reporting on the Balance Sheet (Assets, Liabilities, Equity) and Income Statement (Revenue, Expenses). All journal entries reference accounts from this list.
List View
View and manage all general ledger accounts organized by account type
| Type | Definition |
|---|---|
| Assets | Resources owned by the company (cash, accounts receivable, inventory, equipment). Normal balance is debit. Appears on Balance Sheet. |
| Liabilities | Obligations owed to others (accounts payable, loans, accrued expenses). Normal balance is credit. Appears on Balance Sheet. |
| Equity | Owner's stake in the company (retained earnings, capital stock). Normal balance is credit. Appears on Balance Sheet. |
| Revenue | Income from sales and services. Normal balance is credit. Appears on Income Statement. Temporary account closed at year-end. |
| Cost of Goods Sold (COGS) | Direct costs of producing goods or services sold. Normal balance is debit. Appears on Income Statement. Temporary account closed at year-end. |
| Expenses | Operating costs (payroll, utilities, supplies). Normal balance is debit. Appears on Income Statement. Temporary account closed at year-end. |
| Field | Definition |
|---|---|
| Account Number | Unique identifier for the account. Typically follows a numbering convention (e.g., 1000s for Assets, 2000s for Liabilities, etc.). |
| Account Name | Descriptive name for the account (e.g., "Cash - Operating", "Accounts Receivable", "Building Materials"). |
| Account Type | Classification determining where the account appears in financial reports (Asset, Liability, Equity, Revenue, COGS, Expense). |
| Parent Account | For sub-accounts, the parent account they roll up into for summary reporting. |
| Balance | Current balance from posted journal entries. Debit balances shown positive for assets/expenses, credit balances for liabilities/revenue/equity. |
| Status | Active (available for use in journal entries) or Inactive (hidden but history preserved). |
| Action | Definition |
|---|---|
| Add Account | Create a new general ledger account with number, name, and type. |
| Edit Account | Modify account name or other settings. Account number and type cannot be changed after entries exist. |
| View Transactions | Navigate to posted journal entries for this account. |
| Inactivate Account | Hide the account from selection lists while preserving historical data. |
FAQ
Account Setup
Adding new accounts allows you to track specific categories of transactions.
- Navigate to Financial > Journal > Accounts
- Click the Add Account button
- Enter the Account Number following your numbering convention
- Enter a descriptive Account Name
- Select the Account Type
- If creating a sub-account, select the Parent Account
- Click Save
GL accounts are assigned at the line item level on bills, purchase orders, and other transactions. You can change them individually or in batch.
- Click on the line item you want to change
- Click the GL Account field
- Search by account name or number
- Select the new account
- Check the boxes next to multiple line items
- Click Change GL Account in the batch options
- Select the new account for all selected items
Construction companies typically use these common account categories:
- Cash - Operating
- Accounts Receivable
- Inventory - Materials
- Work in Progress (WIP)
- Accounts Payable
- Billings in Excess
- Accrued Expenses
- Building Materials
- Shop Supplies
- Subcontractor Costs
- Equipment Rentals