What is an Account?
Accounts allow you classify transactions. Accounts are made up of a Purpose and Descriptive Name e.g. Income:Consulting or Expense:Phone
How do I use Accounts?
You apply an Account to a transaction when you create it. That way Saasu knows what’s it’s for and where to put it in reports and lists. The common types of Accounts are -
- Income - For Accounts that track any income streams you have. Income accounts may include consulting fees, rent, bank interest, or profit made on investment sales (such as the sale of shares or an investment property)
- Expense - For accounts that track any expense types you have. Expense accounts may include stationery, land rates, maintenance and repairs etc.
- Asset - For accounts that track your assets. These may include your house, fixtures and fittings
- Equity - Used for capturing retained earnings from prior years, owners and shareholders capital.
- Loan - Loan accounts are also known as liability accounts.
- Other Income - Often used for interest receipts and tax credits.
- Other Expense - Often used for interest expense and tax payments.
- Cost of Sales - Used by the inventory system for tracking the cost of goods and services for making a sale.
The descriptive names usually given to Accounts are -
- Common name like “Telephone”, “Rent” or “Sales”.
- This is the descriptive name can also be for Accounts which often refer to the accounting methodology. As an example “Pension Payable” implies the account is used to hold money pending payment to a Pension Fund.
