Chart of accounts

The chart of accounts (COA) defines the accounts every journal line posts to. Its structure determines how activity rolls up on the financial statements, so a deliberate account hierarchy keeps reporting clean.

Example

You want management-fee income reported separately from base rental income.

Add an income account, code 4100, "Management Fee Income".
Map the relevant billing item (or post the income line) to 4100.
The income statement now presents management fees on their own line rather than commingled with rental income.

How to add an account

Go to Accounting → Chart of Accounts.
Select New account.
Choose the account type — asset, liability, equity, income, or expense. The type governs normal balance and statement placement.
Enter the account code and name. The code drives sort order within the type.
Save. The account is now selectable across the application.

Account type generally cannot be changed once the account has posted activity. Confirm the type before posting against it.

How to deactivate an account

To take an account out of use, mark it inactive rather than deleting it. Historical postings and prior-period statements are preserved; the account is simply removed from selection on new entries.

Key concepts

Account types map to the statements: assets, liabilities, and equity to the balance sheet; income and expenses to the income statement.
Account codes are for ordering and convention — adopt a numbering scheme (e.g. 4000s income, 5000s expense) and apply it consistently.

Journal entries

Post against these accounts.

Reports

See accounts roll up into the statements.