Account Types

You can choose from 16 different account types. Each type serves a specific purpose. If you're not sure which type you should assign to a new account, consult your accountant or a Certified Consultant.

For header accounts, there are only eight choices; the account types are identical in name to the eight account classifications (Header and Detail accounts).

• Asset
• Liability
• Income
• Expense
• Equity
• Cost of Sales
• Other Income

• Other Expense

• Assets --- Debit --- All the things a business owns.

• Liabilities --- Credit --- All the things a business owes.
• Equity --- Credit --- The difference between what is owned and what is owed.
• Income --- Credit --- The money received for products and/or services sold.
• Cost of Sales --- Debit --- The direct cost of products and/or services sold. What it costs you to produce income.
• Expenses --- Debit --- The money paid to operate the business
• Balance Sheet Equation (Equity = Assets - Liabilities)

For detail accounts, there are multiple account types for the asset and liability classifications.

Asset Account Types

• Bank
• Accounts Receivable
• Other Current Asset
• Fixed Asset
• Other Asset

Liability Account Types

• Credit Card
• Accounts Payable
• Other Current Liability
• Long Term Liability
• Other Liability

For the other six classifications, there is one account type apiece, each named the same as the classification.

• Income
• Expense
• Equity
• Cost of Sales
• Other Income
• Other Expense

If you are viewing an existing account's information, the account's type appears on this screen. If the account is a detail asset or liability account, all the account types for its classification appear in a list. You can change the type to another in the list.

If you are creating a new account, all eight header account types or sixteen detail account types appear in a list. When you select the account type, the classification that corresponds to the selected type appears in the Account Classification field.