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  • Section: Accounts
  • Last updated: June 28, 2019, 3:38 p.m.

Account Types

You can choose from 16 different account types. Each type serves a specific purpose. If you're not sure which type you should assign to a new account, consult your accountant or a Certified Consultant.

For header accounts, there are only eight choices; the account types are identical in name to the eight account classifications (Header and Detail accounts).

  • Asset
  • Liability
  • Income
  • Expense
  • Equity
  • Cost of Sales
  • Other Income
  • Other Expense
  • Assets — Debit — All the things a business owns.
  • Liabilities — Credit — All the things a business owes.
  • Equity — Credit — The difference between what is owned and what is owed.
  • Income — Credit — The money received for products and/or services sold.
  • Cost of Sales — Debit — The direct cost of products and/or services sold. What it costs you to produce income.
  • Expenses — Debit — The money paid to operate the business
  • Balance Sheet Equation (Equity = Assets - Liabilities)

For detail accounts, there are multiple account types for the asset and liability classifications. For more information about the different between Header and Detail accounts see this article

Asset Account Types

  • Bank
  • Accounts Receivable
  • Other Current Asset
  • Fixed Asset
  • Other Asset

Liability Account Types

  • Credit Card
  • Accounts Payable
  • Other Current Liability
  • Long Term Liability
  • Other Liability

For the other six classifications, there is one account type, each named the same as the classification.

  • Income
  • Expense
  • Equity
  • Cost of Sales
  • Other Income
  • Other Expense

If you are viewing an existing account's information, the account's type appears on this screen. If the account is a detail asset or liability account, all the account types for its classification appear in a list. You can change the type to another in the list.

If you are creating a new account, all eight header account types or sixteen detail account types appear in a list. When you select the account type, the classification that corresponds to the selected type appears in the Account Classification field.