Managing Accounts

Creating, editing, and maintaining your accounts

Properly managing your accounts is essential for accurate financial record-keeping. The Finance Module provides tools to create, edit, and maintain your accounts, ensuring your financial data is organized and up-to-date.

Creating New Accounts

As your tailoring business grows, you may need to create new accounts to track specific types of income, expenses, assets, or liabilities.

Steps to Create a New Account

  1. Go to Finance > Accounts
  2. Click the "Add Account" button
  3. Enter the account number (following your numbering system)
  4. Enter the account name
  5. Select the account type (Asset, Liability, Equity, Revenue, Expense)
  6. Select the account subtype (e.g., Current Asset, Fixed Asset)
  7. Select a parent account if this is a sub-account
  8. Enter an opening balance if applicable
  9. Add a description to clarify the account's purpose
  10. Click "Create Account"

When to Create New Accounts

  • When you start offering a new service (e.g., wedding dress alterations)
  • When you want to track a specific type of expense separately (e.g., premium fabrics)
  • When you open a new bank account
  • When you take on a new type of liability (e.g., equipment loan)
  • When you need more detailed financial information for decision-making

Editing Accounts

You may need to edit account details to correct errors, update descriptions, or change the account structure.

Steps to Edit an Account

  1. Go to Finance > Accounts
  2. Find the account you want to edit
  3. Click the "Edit" button (pencil icon)
  4. Update the account details as needed
  5. Click "Save Changes"

Important Note on Editing Accounts

Be cautious when editing accounts that already have transactions. Changing the account type or number can affect your financial reports. It's generally better to create a new account and transfer the balance rather than changing fundamental properties of an active account.

Deactivating Accounts

Rather than deleting accounts (which could affect historical data), you can deactivate accounts that are no longer needed.

Steps to Deactivate an Account

  1. Go to Finance > Accounts
  2. Find the account you want to deactivate
  3. Click the "More Options" button (three dots)
  4. Select "Deactivate Account"
  5. Confirm the deactivation

Benefits of Deactivating vs. Deleting

  • Preserves historical financial data
  • Maintains the integrity of past financial reports
  • Allows you to reactivate the account if needed in the future
  • Keeps your active account list clean and relevant

Reconciling Accounts

Account reconciliation is the process of comparing your internal records with external statements (like bank statements) to ensure accuracy.

Steps to Reconcile an Account

  1. Go to Finance > Accounts > Reconciliation
  2. Select the account to reconcile
  3. Enter the statement date and ending balance
  4. Match transactions with your statement
  5. Identify and resolve any discrepancies
  6. Click "Complete Reconciliation"

Real-World Example

"Noor runs a tailoring shop and recently expanded to offer embroidery services. To track this new revenue stream separately, she created a new account: 4150 Embroidery Services. She made it a sub-account under 4100 Custom Tailoring. She also created a new expense account: 5115 Embroidery Supplies, as a sub-account under 5110 Materials. By creating these specific accounts, she can easily track how profitable her new embroidery service is. After three months, she ran a profit and loss report filtered for just these accounts and discovered that embroidery was generating a 40% profit margin, higher than her general tailoring services. This insight led her to expand her embroidery offerings and promote them more heavily."

Account StructureBanking