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      What is the Chart of Accounts?

      The Chart of Accounts (CoA) is a unique list of a business’ accounts, organized by assets (what your business owns), liabilities (what your business owes to others), income (the business’ revenue) and expenses (purchases made for your business).

      CoAs are useful for organizing your accounts so you can work smarter with your accountant, making it easy to see the business’ financial situation at the present time.

      Accounting reports like the Chart of Accounts are available on the Plus and Premium plans only.

       

      The Chart of Accounts is only accurate with data from January 1, 2018 onwards.

       

       

      Access Chart of Accounts

      The Chart of Accounts can be accessed using these steps:

      1. Click on the Accounting section
      2. Then click on the Chart of Accounts sub-tab.

      Chart of accounts with sample data.
      There are a few things you're able to change when viewing the Chart of Accounts. Click on the drop down next to All Accounts, and you'll see some filters:
      Filters for chart of accounts.

      • Date Range - Within the dropdown, choose one of the preset ranges (This Year, This Quarter or Last Quarter) or choose a Custom date range instead (Jan 1, 2018 is the earliest date we can retrieve data from currently)
      • Currency - Choose between individual currencies


      Clicking More Actions in the top right will give you easy access to another useful report, the General Ledger.

       

      Parent Accounts

      FreshBooks uses Generally Accepted Accounting Principles (GAAP) friendly Parent Accounts right from the start. These are set up as defaults and cannot be edited or deleted. Each Parent Account in the list is assigned a multi-digit number to help identify the account type.

      These Parent Accounts are affected by certain events in your FreshBooks account:

      • Cash - Other Income, Payments Collected, Bank Accounts
      • Accounts Receivable - Your unpaid invoices (except Drafts)
      • Revenue - Sales - Paid invoices
      • Revenue - Billed Expenses - Expenses that have been rebilled
      • Operating Expenses - Categories of Expenses you’ve tracked

      Note: Only Accountants invited to your account can create custom accounts under Parent Accounts to help organize your financials.

       

      Add or Edit Custom Accounts

       

      Only Accountants invited to your account can create and edit Custom Accounts to help ensure your financial reporting is accurate. If your Accountant needs to create Journal Entries, see the steps here instead.

       

      To add a new Custom Account, use these steps (note that once a Custom Account is created, it can't be deleted):

      1. As an Accountant, click on the Accounting section
      2. Then click on the Chart of Accounts sub-tab
      3. Click on More Actions
      4. Then select Add New Account
      5. Enter in a Name for the accountAdd new account pop-up with fields.
      6. Choose the Parent Account to sort this new account under
      7. Enter in the Account Number
      8. Click on Save to finish.


      If you need to edit a custom account: 

      1. As an Accountant, in the Chart of Accounts, click on the custom account you created
      2. Click on More Actions (this only appears on custom accounts)
      3. Click on Edit Account
      4. Make the changes as needed and click Save to finish.

       

      FAQs

      How do I record assets purchased that are not operating expenses (e.g. depreciation)?

      Currently depreciation is not calculated automatically. You can record depreciation by having your invited Accountant create a new Account called Depreciation and log any assets as Journal Entries instead.

        

      Can I change where the account is credited when I enter the expense in FreshBooks? 

      For example, if you pay for your Expenses with a credit card sometimes and with a chequing account other times, they all show up under Cash in your Chart of Accounts.

      These Expenses will only be moved from a Cash Asset to a Liability once you complete Bank Reconciliation and match those transactions.

      If you’ve accidentally matched to the wrong Expense (e.g., a chequing transaction was matched to an expense that was imported in from your Credit Card account), you can use the steps here to un-match and free up the expense. Then you can match the expense in your Credit Card account (via Bank Reconciliation) instead.

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