Within the different account types there are a few additional options and things to keep in mind. Let's go through each account type and the options they offer

Setting Up Funds

Funds are listed at the top of the Chart of Accounts and represent your organization's different pots of money.

How to Create a Fund

1. Click Add Fund.

2. Enter a fund name.

3. (Optional) Assign a color for easy identification in reports and register graphs.

4. Click Save.

Where Fund Colors Appear

• On the Chart of Accounts screen.

• On the fund balance graph at the bottom of each register.

Fund and Equity Account Relationship

Creating a fund automatically creates a corresponding equity account with a system-generated number.

• If needed, you can:

  • Change the equity account number.

  • Change the equity account name (note: this will not update the fund name).

  • Change the fund name (note: this will not update the equity account name).

Be sure to manually update both names if you want them to match.

Setting Up Assets or Liabilities

If you are creating an asset or liability account, you will be asked to select a Type and Activity for that account.

Type refers to how you would like to use the account in the software. The three options are:

• Use as a Register - You would select this option if you record transactions to that account and want to see a running balance for it. You can then choose to work in that account in the Register screen. A good example of this would be a bank account, like a checking or savings account.
• Accounts Receivable/Accounts Payable - You would choose this option if you use this account to hold a balance for your invoices/bills and want to select this in the Accounts Receivable/Accounts Payable modules in the software.
• None - You would use this option if the account does not meet the previous criteria but you would still like to use it for transactional purposes. An example of this would be an account for a Fixed Asset your organization owns.
  
  
  
  

What Is an Account Activity?

Activity refers to how you would like the account to appear on the Statement of Cash Flows report in the software. The four options are:

• Cash
• Operating - This option is for the changes in cash other than those reported in the investing and financing sections.
• Investing - This refers to the amounts spent to purchase long-term assets, such as equipment, vehicles, and long-term investments. The investing section also reports the amount received from the sale of long-term assets.
• Financing - This refers to the amounts received from borrowings and repayments.
  
  

Note: If you would like more clarification about these options, view a resource from the Accounting Coach that covers how a Statement of Cash Flows works.

Setting Up Income and Expenses

These account types are most frequently used with sub-accounts and fund allocations.

Sub-Accounts

Use sub-accounts to group related income or expense categories under a main account.
Example: Multiple types of donations can be grouped under a parent “Contributions” account.

Fund Allocation (Default Fund)

Each income or expense account allows you to assign a default fund.

• When entering a transaction in the register, the system will auto-select the assigned fund.

• You can change the fund manually during transaction entry if needed.

This feature is useful if the same fund is consistently used for a specific income or expense category.