Account Structure

Organizing your accounts hierarchically

Account Structure refers to how your accounts are organized hierarchically. A well-designed account structure makes it easier to navigate your chart of accounts, generate meaningful reports, and understand your financial position at different levels of detail.

Hierarchical Account Structure

In the Finance Module, accounts can be organized in a parent-child relationship, creating a tree-like structure. This allows you to:

  • Group related accounts together
  • Create summary accounts that roll up details from sub-accounts
  • Generate reports at different levels of detail
  • Navigate your chart of accounts more easily

Example Account Structure for a Tailoring Business

1000 ASSETS
  1100 Current Assets
    1110 Cash & Bank
      1111 Main Checking Account
      1112 Savings Account
      1113 Petty Cash
    1120 Accounts Receivable
      1121 Customer Receivables
      1122 Employee Advances
    1130 Inventory
      1131 Fabric Inventory
      1132 Thread & Notions
      1133 Finished Goods
  1200 Fixed Assets
    1210 Equipment
      1211 Sewing Machines
      1212 Cutting Equipment
      1213 Pressing Equipment
    1220 Furniture & Fixtures
    1230 Computers & Electronics

5000 EXPENSES
  5100 Cost of Goods Sold
    5110 Fabric Costs
      5111 Silk & Premium Fabrics
      5112 Cotton & Linen
      5113 Wool & Suiting
      5114 Synthetic Materials
    5120 Notions & Accessories
      5121 Buttons & Fasteners
      5122 Zippers & Closures
      5123 Thread & Elastic
  5200 Operating Expenses
    5210 Rent & Utilities
      5211 Shop Rent
      5212 Electricity
      5213 Water
      5214 Internet & Phone
    5220 Salaries & Wages
      5221 Tailor Wages
      5222 Assistant Wages
      5223 Administrative Staff

Benefits of a Hierarchical Structure

Detailed Financial Analysis

You can analyze your finances at different levels. For example, you can look at total fabric costs or drill down to see costs for specific fabric types.

Simplified Reporting

Generate summary reports showing only parent accounts for a high-level overview, or detailed reports showing all sub-accounts for in-depth analysis.

Better Organization

As your tailoring business grows and your chart of accounts expands, a hierarchical structure keeps everything organized and manageable.

Easier Navigation

The tree view in the Finance Module makes it easy to navigate through your accounts, expanding and collapsing sections as needed.

Creating and Managing Account Structure

Creating Parent-Child Relationships

  1. Go to Finance > Accounts > Account Structure
  2. Select an account you want to make a parent account
  3. Click "Add Sub-Account" to create a child account
  4. Enter the account details for the new sub-account
  5. Click "Save" to create the relationship

Viewing Account Structure

The Finance Module provides multiple ways to view your account structure:

  • Tree View: Shows the hierarchical structure with expandable/collapsible nodes
  • Indented List: Shows all accounts with indentation to indicate the hierarchy
  • Flat List with Parent References: Shows all accounts in a flat list with parent account references

Real-World Example

"Layla runs a tailoring business that offers both custom garments and alterations. She structured her revenue accounts hierarchically: 4000 Revenue as the parent account, with 4100 Custom Tailoring and 4200 Alterations as sub-accounts. Under Custom Tailoring, she created further sub-accounts: 4110 Wedding Attire, 4120 Business Suits, and 4130 Casual Wear. This structure allows her to see her total revenue at a glance, but also drill down to see which specific services are generating the most income. When she noticed that Wedding Attire was her most profitable category, she decided to increase her marketing efforts for bridal services."

Chart of AccountsManaging Accounts