hi dear o doers and welcome to this video on the chart of accounts the chart of accounts is simply a list of all the accounts that a business uses to keep their records organized accounting software groups these accounts by their type and while the names might vary slightly from one software to another they're generally similar in ODU all of our account types are split into different categories depending on which financial report they belong to let's look first at the accounts that appear on the balance sheet Equity accounts represent the financial ownership of a company so
these are used for shareholder accounts and retained earnings assets are what the company owns and can be separated into subtypes like bank and cash accounts current assets like your accounts receivable and fixed assets like property equipment company Vehicles Etc liabilities are what a company owes so these are future obligations such as accounts payable short and long-term loans Etc and for the profit and loss report we have our income and expense accounts income accounts or where a company keeps track of Revenue coming in from their sales by using multiple income accounts companies can track their income
from different sales channels or different product categories to have a more detailed understanding of their revenue similarly expense accounts are where a company keeps track of their expenses going out whether that's due to external purchases inventory loss or internal expenses let's take a look at it in our Bloom database so to start off we'll open the accounting app and go into configuration and chart of accounts now there are a few things to keep in mind about the chart of accounts first the chart of accounts can look a little different depending on which fiscal localization the
company uses that's because the typical chart of accounts in Canada for example is different from the CH of accounts from Belgium like we see here however as databases may use the multi-company feature it is possible to have multiple charts of accounts in a database but there can only be one chart of accounts per company within each company's chart of accounts each account must have a unique code and a name type and if it allows reconciliation this option allows you to enable reconciliation of Journal items that hit this account with open transactions such as payments in
your bank we can look at any one of these accounts we'll take an income account for example and use the view option to get into the form view so here you'll see we have a few additional options the really important one is this deprecated field this is basically just archiving but for an account now that we have that done we can move on to the next next topic this has been your palal I'll see you in the next one
