See also:
Feature Guide -
General Ledger (17.9 mb PDF)
Resources:
Chart of Accounts FAQs
Financial Analysis Using Ratios FAQs
G/L Sub-Classes FAQs
General Ledger FAQs
Profit Centers FAQs |
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The Chart of Accounts
contains your G/L accounts.
These accounts are the basis of your accounting
system, keeping monthly totals of income, costs, expenses, assets,
and liabilities. The balances that appear on income
statements, balance
sheets, trial
balances, and other financials are based on the account totals
in the chart of accounts.
The Clients & Profits X chart of accounts is completely customizable.
You can have as few or as many accounts as you need (there’s no
real limit to the quantity of accounts). Each account has an account
number, classification, sub-class, and categories for cash flow and ratio
reports. Separate accounts can be set up for different profit centers
and departments. Every account keeps real-time running balances for up
to 24 accounting periods.
Budget amounts can be quickly set up for any or all accounts and periods
using last year’s totals. Account totals can roll up into other
accounts. The accounts are set up with the rollup information in the
Chart of Accounts. Choose the Rollup option when printing financials
to rollup, or hide, the account totals in the designated account. Accounts
can also be made confidential. Confidential accounts work like regular
accounts, but can’t be used by non-managers. They don’t appear
on the printed account
list or the lookup
list.
You can add, edit, and delete accounts from the Chart of Accounts window.
Account numbers
There are no rigid rules about numbering G/L
accounts, although the number has a limited length (9-digits,
which includes a decimal point and 2 decimals places to indicate
the account’s department). You choose your own account numbers,
so you can use any numbering system that conforms to accounting
standards. Also, the same account number can’t be used twice.
Account numbers are numeric, so they can’t contain letters
or characters (i.e., dashes, etc.). An account number can’t
be changed if the account has activity (i.e., journal entries)
or a balance. Account numbers can’t contain leading zeros
(e.g., 001000).
Account classes, subclasses, and profit centers
Accounts are categorized three ways: a major
class (e.g., asset, liability, sales, etc.), a subclass (e.g.,
current assets, fixed assets, etc.), and a profit center. The
class organizes accounts as assets, liabilities, equities, sales,
costs, expenses, other income, income taxes, or other expenses.
Asset, liability, and equity accounts appear on the Balance Sheet.
Income (billings), costs, expenses, other income, income taxes,
and other expenses appear on the Income Statement. All accounts
appear on the Trial Balance and the Detailed
General Ledger. The classes themselves are preset, but their
names can be changed in Preferences.
Accounts are subtotaled within each class using a subclass. Subclasses
are optional and user-defined, so you can create as many as needed. An
account’s subclass can be edited anytime. Each account can belong
to one profit center and one department. Profit centers are user-defined,
so you can create as many as needed. Financial statements can be printed
for one profit center at a time, or all profit centers.
Default accounts
Clients & Profits X has the ability to pre-program
standard, or default, accounts into your database. These default
accounts are entered automatically when payables, checks, receivables,
and client payments are added. Default accounts can be overridden
by simply entering an account number when a transaction is added.
Default account numbers can be entered for these accounts: Cash/Checking;
Accounts Receivable; Accounts Payable; Client Retainers; Billing/Income;
Employee Advances; Media Accruals; Media Costs; Overhead Expenses;
Retained Earnings; Advance Billings; A/R Discount Given; A/P
Discount Taken. Default G/L accounts are optional, but can help
make your accounting more consistent and reduce errors. The default
account numbers are entered in the G/L accounts Preferences window.
Year-to-date net income, retained earnings
The Year-to-Date Net Income and Retained Earnings
accounts are necessary to your financial statements. The year-to-date
net income account (which is always 999999) is calculated each
time a financial statement is printed. The account’s balance
is always the income less costs and expenses. While the account
number can’t be changed, you can name the account whatever
you want. You can’t post entries directly to the YTD income
account; instead, entries should be posted to income, costs,
expenses, or Retained Earnings.
The Retained Earnings account tracks net income (or loss) from the previous
accounting years. It’s an equity account of your choosing. The account
is only used at year-end closing and for adjustments. Unlike the year-to-date
net income account, you can post journal entries to the Retained Earnings
account when you need to adjust last year’s ending balances.
The suspense account
The suspense account (999998) is updated when
the program isn’t able to find the account entered on the
transaction. It’s an important account because it acts as
a safety net when the wrong account, or no account, is entered.
When entries are found in the suspense account, they are reversed
out of suspense and into the correct account.
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