Chart of Accounts

Organizing your financial records

Your Chart of Accounts is like a filing system for all your financial transactions. It helps you categorize income, expenses, assets, and liabilities so you can track your tailoring business finances effectively.

Account Types

Basic Account Types

  • Assets (1000-1999)What your business owns
  • Liabilities (2000-2999)What your business owes
  • Equity (3000-3999)Owner's stake in the business
  • Revenue (4000-4999)Money earned from services/sales
  • Expenses (5000-6999)Costs of running your business

Tailoring-Specific Accounts

  • 1200 - Fabric InventoryAsset
  • 4100 - Custom Tailoring RevenueRevenue
  • 4200 - Alterations RevenueRevenue
  • 5100 - Fabric CostsExpense
  • 6100 - Tailor WagesExpense

Creating and Managing Accounts

Creating a New Account

  1. Go to Finance > Accounts
  2. Click the "Add Account" button
  3. Enter an account number (following the numbering system)
  4. Enter an account name
  5. Select the account type and subtype
  6. Add a description (optional)
  7. Click "Create Account"

Viewing Your Accounts

You can view your accounts in different formats:

  • Table View: A list of all accounts with their balances
  • Tree View: A hierarchical view showing the account structure
  • Kanban View: Accounts organized by type in columns

Real-World Example

"Mohammed runs a tailoring shop specializing in traditional clothing. He needs to track his expensive sewing machines separately from his other equipment. He goes to Finance > Accounts and clicks 'Add Account'. He creates account number 1510 named 'Sewing Machines' with type 'Asset' and subtype 'Fixed Asset'. He enters the total value of his machines as the opening balance. Now when he buys a new machine, he can record it against this specific account, making it easier to track the value of his specialized equipment over time."

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