Adding a New Account into Your Chart of Accounts

The accounting module in SmartB is flexible and it allows companies to create or modify the pre-installed version of Chart of Accounts (COA). In the event that you want to modify your COA, you may learn how to do it here.

However, if you want to change the entire COA of your company, please skip to the next course unit.

Note: If this is the first time you’ve heard of the term “Chart of Accounts”, then, it might be worth reading this article (click here) before you proceed.

 

Adding a New Line

Before adding a new line of accounts. It’s important that you should understand some of the following areas before you make any changes:

Category & Types of Accounts

Here is a list of account categories (and the associated account type) that is used in SmartB’s system. This list is for your convenience.

Parent & Child Accounts

You are allowed to have as many levels of Parents and Child accounts as you need. However, if you are not familiar with this, make sure to check with your accountant before you do so.

Note:

  • Use a “View” account type if the account is a parent account to another child account and this is true even if you have multiple generations of parent-child accounts.
  • You can ONLY post journal entries (or any type of transactions) into a child account at the lowest level of the hierarchy. The system will not allow you to post anything into any parent account.

Instructions

To add a new line of account in the COA, please watch video for instructions.

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2 thoughts on “Adding a New Account into Your Chart of Accounts”

    • Correct Answer: b) False

      Explanation: Parent account is not a real account, treat it as a name of a group of accounts. Only non-parent account are real account that can be used in transaction.

      Reply

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