Adding and deleting accounts using chart of accounts

Chart of accounts is the list of predefined account names that a company has identified and that is made available for recording transactions. Chart of accounts may be of different kinds. It may be as large or as complex as the company itself. For example if we look international corporation with several divisions may need thousands of accounts, whereas a small organization could manage in few hundred accounts.

In Numia, the common accounts used across the world for small and large businesses have been listed in Default accounts. In case if you find that your accounts is not listed in default accounts, you can add new accounts. If you need more accounts or sub accounts other than the 'Default accounts', then you can create your own accounts by clicking 'Add new' Button at the page. Just follow these steps to add new account type or account name.

Adding Accounts :

• Go to Banking menu and then select Chart of Accounts.
• Now you can view the list of default accounts and user created accounts.
• If you have not created any accounts then only defaults accounts are listed.
• Click the “Add New” button to add new account type and account name.
• Fill the details like account no, account section, description then click Add Type button.
• Now you new account type is created. You can view the newly created account type in the chart of accounts main page.
• You could also have the provision of editing your user created account types. Just click the edit button in the Chart of accounts page. Then you can change the account type of the existing accounts. But you can't edit the default accounts.
  

Deleting Accounts :

It is possible to delete your existing accounts in Numia. In “Chart of accounts” page the default accounts and the user created accounts are listed. Just click the delete button corresponding to the account type you need to delete. But once you deleted the account, it is not possible to recover it or view it.

Chart Of Accounts

A Chart of Accounts(COA) is a list of all account names and numbers in your company's general ledger . The chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a company code.

Chart of Accounts is classified into one of the five categories :

1. Assets - It is the group of things that you own. Assets could include a car, cash, a house, stocks, or anything else that has convertible value.

2. Liabilities - It is the group of things on which you owe money liabilities could include a car loan, a student loan, a mortgage, your investment margin account, or anything else which you must pay back at some time.

3. Equity - It is same as "net worth." It represents what is left over after subtracting your liabilities from your assets.

4. Income - It is the payment you receive for your time, services you provide, or the use of your money.

5. Expenses - It refers to money you spend to purchase goods or services provided by someone else.

Each account in the chart is assigned as unique identifier, typically an account number.For very small businesses, three digits may suffice for the account number. COA should be designed to capture financial information to make good financial decisions.

Whether you run a business or a student of business, Our online Accounting software Numia ,will help you to maintain your accounts easily.In Numia , we have many default accounts which covers almost all small scale business needs.

According to your business You can create your own accounts and account types too.