An asset can be something tangible like cash, a bank account, property, or a piece of equipment. AssetsĪssets are things of value that your business owns. Understanding Account TypesĮvery category in your chart of accounts falls into one of these five account types: asset, income, equity, liability, or expense. To add an account ID to your chart of accounts, you can do so when creating a new account or by clicking the pencil icon to edit the account information. This is an optional part of account creation. If you’re working with an accountant, or are moving to Wave from another accounting software, account IDs add a language layer to your Chart of Accounts that helps you or your account users reference information more quickly. For more details on accounting for Sales Taxes in Wave, click here. When you add a sales tax, Wave will create the appropriate account for you under the Liabilities tab. If there are no transactions in it and then it is archived, it will not appear on reports, in transactions, and will not be an option for future transactions. You can also completely archive an account - that is, remove it from reports and the transactions page - by deleting all of the transactions in it before following the above directions to archive it. When an account is archived, you will see a new tag next to it in the Chart of Accounts page. Once an account has been archived, you can still run reports for the account and retain any transactions that have been categorized into it, but it will not be possible to use the account for any new transactions unless it is un-archived (which can be done at any time by reversing the steps above). Learn more in How to use bulk actions on transactions.Īccounts can be archived by clicking the grey pencil icon to the right of the account and selecting the Archive Account option that appears in the new window that opens. Once complete, you can archive or rename the old account. If you have accidentally created an account under the wrong type, which can no longer be changed, you can create a new account under the correct type. Some account types can also only be changed to certain other types. The Account Type cannot be edited for certain types of accounts once they have been created these accounts will have their Account Type box greyed out. The Account Name, ID, and Description can be edited at any time by clicking on the grey pencil icon to the right of the account you want to change. It’s not currently possible to add additional account types or sub-accounts to your Chart of Accounts. To add a new account, click Add an Account and enter the Account Type & Account Name (optional: enter the Account ID and Description). You’ll see a tab for Assets, Liabilities, Income, Expenses, and Equity accounts. You can navigate between account types using tabs at the top of the page. The second portion of this article explains each account type and how to use them. The answer to certain tax and accounting issues is often highly dependent on the fact situation presented and your overall financial status.In this article, learn how to navigate & use your Chart of Accounts page. While the concepts discussed herein are intended to help business owners understand general accounting concepts, always speak with a CPA regarding your particular financial situation. Therefore, the information available via this website and courses should not be considered current, complete or exhaustive, nor should you rely on such information for a particular course of conduct for an accounting or tax scenario. Tax and accounting rules and information change regularly. Reliance on any information provided on this site or courses is solely at your own risk. Accounting practices, tax laws, and regulations vary from jurisdiction to jurisdiction, so speak with a local accounting professional regarding your business. The content is not intended as advice for a specific accounting situation or as a substitute for professional advice from a licensed CPA. The content provided on and accompanying courses is intended for educational and informational purposes only to help business owners understand general accounting issues.
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