Accounts, also referred to as "ledgers” or “ledger accounts”, are the heart of a company's financial record-keeping system. They represent a complete record of all financial transactions over the life of an organization.
Each account is periodically totaled and balanced (debits must equal credits) to ensure accuracy and help you prepare financial statements like the balance sheet and income statement.
Getting Started With Accounts on Refrens
If you are just getting started, you will notice that the system will automatically create some accounts for your business based on the documents that you have created to date on Refrens.
The system will also automatically create accounts for all your clients & vendors, and also pass ledger entries for them.
You can also click on any account to see all the voucher entries passed in these accounts.
You can click on any voucher to see detailed credit and debit entries with all affected accounts as shown below.
Creating New Accounts
To create a new account, go to Advanced Accounting > Chart of Accounts > Create New Account:
Simply add the account name, select the account group, and add the opening balance (if any), and you are good to go.
By the way, you can also add accounts in bulk with the "Bulk Upload" feature. check out this article to see how>
Editing Accounts
You can edit the name of an account anytime you require.
You can also change the account group of an account. But keep in mind that there are several restrictions on this (to help you save from accidental errors & data discrepancies in reporting).
1. For default accounts generated by the system -
Account groups in the accounts generated by the system can not be edited.
2. For manually generated accounts -
A. If the account does not have any journal entries:
If an account does not have any entries, you are free to change its group to any type of account group.
B. If the account has any journal entries:
If the account has any entry, your choice of selecting an account group will be restricted.
For example, if the current account type is Asset / Expense, you can change the account group to Asset / Expense account type only.
Similarly, if the current account type is Liability / Income / Capital, you can change the account group to Liability / Income / Capital account type only.
Additional Resources:
1. Introduction to advanced accounting on Refrens
2. What are account groups, categories, and types?
3. How to create, edit, and download account groups?
Read the help article here>
4. What are voucher books & voucher types?
5. How to create new voucher books & add voucher entries?
6. How to upload accounts in bulk?
Read the help article here>