Account Types

Account Types are high-level bookkeeping categories you use to organize transactions for reporting (e.g., income statements and expense tracking). Think of them as the “buckets” your detailed categories roll up into, so your financial reports stay tidy and meaningful.

Common examples

• Assets: Cash, Accounts Receivable, Equipment

• Liabilities: Accounts Payable, Loans Payable

• Operating Revenues: Sales, Service Fees

• Operating Expenses: Salaries, Rent, Depreciation

Tip: After you define Account Types, you can link your product or staff categories to an “Account” record to keep everything grouped for reporting.

Create a new Account Type

1. Go to Settings → Account Types

2. Click + New

3. Enter a clear Name (e.g., “Operating Expenses”)

4. Click Save

Naming best practices

• Use plain, universal terms (e.g., Sales, Salaries Expense)

• Keep to a consistent tense and plurality (e.g., “Expenses” vs “Expense”)

• Avoid duplicate or overlapping meanings

How Account Types fit with Accounts & Categories

• Account Types = top-level financial groupings (e.g., Operating Expenses)

• Accounts (organizing records) = containers that link related categories together (e.g., an “Beverages” account that ties several product categories)

• Categories = the specific labels you apply to items (e.g., Product Category “Water”) that ultimately roll up to an Account and then to its Account Type for reporting.

Frequently asked questions

Do I need to set these up before selling?
You can start selling without them, but setting them early keeps reports clean.

Can I edit or delete an Account Type later?
Yes—adjust as your reporting needs evolve (ensure historical data still makes sense after changes).

What’s the difference between Account Types and Accounts?
Account Types are the financial reporting layer; Accounts are organizational records you can assign to multiple categories for roll-ups.