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.
Account Types
Assets, Liabilities, Equity, Revenue, Cost of Goods Sold, and Expenses
Account Numbering
Structured numbering system for organization and reporting
Sub-accounts
Create hierarchical structures with parent and child accounts
Balance Tracking
View real-time account balances from posted journal entries
Integration
Sync with QuickBooks or Sage Intacct for external accounting
Account Management
Add, edit, and inactivate accounts as business needs change
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.
Individual Change:
Click on the line item you want to change
Click the GL Account field
Search by account name or number
Select the new account
Batch Change:
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:
