Customise chart of account

Why we need to customise chart if account?

• It properly categorizing income and expenses ensures compliance with accounting standards and tax regulations, making audits and financial reporting smoother.

Customize Categories for Your Business:

Example Scenario - Rental Income: 

If your business generates fixed income from rental properties or equipment, you would create specific accounts under 'Other Income' to categorize these earnings. 

1.Navigate to “Accounting” section

• Select Chart of Account

2.Select Chart of Accounts:

• Locate and select the option to manage or view the chart of accounts.

3.Enter Account Types:

• Other Income: This account type is used to record income that doesn't fall under your primary business activities. For example, rental income from properties or equipment that your business owns can be categorized under 'Other Income' because it's not directly related to your core sales or services.
• Other Expense: This account type is used to record expenses that are not directly related to your primary operations. For instance, expenses incurred in maintaining or managing rental properties or equipment can be categorized under 'Other Expense'.

By following these steps and customizing your chart of accounts to include specific categories for rental income and expenses, you can effectively manage and analyze the financial aspects of your rental business within your accounting system.

Related Guides on Chart of accounts : 

How to create Chart of Account