How do I add an account?

Chart of Accounts

The Chart of Accounts is your General Ledger. When you create a transaction to receive, buy, sell, and so on, you'll link the transaction to an account in the Chart of Account. Connect uses the accounts listed in the Chart of Accounts to report account balances and transactions recorded in the General Ledger.

If you need help deciding which accounts to set up, contact your accountant. On the other hand, if you need help setting up the accounts in the Chart of Accounts, call customer service for assistance at (800) 243-8275.

Watch a video

Watch a clip from the 2023.08 General Ledger Refresher Training to learn more. [MP4]

Chart of Accounts Overview (5m32s). Learn about the Chart of Accounts, activation date, copy an account, delete an account, termination date, budget notes, and account notes. (2017.08)

Adding an account

1. Open Connect General Ledger > Organization > Chart of Accounts.

2. Click New (CTRL+N).

3. Enter the Account Code.

4. Enter the Account Number.

Create an account number that fits the account mask shown at the end of the Account Number field. See the help topic titled How do I assign the segment range?

5. Enter the Title and Expanded Title.

6. Enter the Normal Balance.

The normal account balance is the debit or credit balance that is expected in a specific account in the General Ledger. Asset accounts and expense accounts usually have a debit balance. While revenue, liability, and equity accounts normally have a credit balance.

See the help topic titled What is the "normal balance"?

7. Enter the Allocations.

An allocation is an amount that has been set apart, or earmarked, to distribute to specific accounts. Use Allocations when you include the amounts in the account will be automatically allocated.

What do you want to do?

This account is not included in Automatic Allocations. Use the Allocations field to select None.
Allocate amounts to the Accounts Payable account. Use the Allocations field to select Accounts Payable.
Allocate amounts to the Cash account. Use the Allocations field to select Cash.
Allocate amounts to the Payroll account. Use the Allocations field to select Payroll.
Allocate amounts to the Warrants Payable account. Use the Allocations field to select Warrants Payable.

8. Enter the Activation Date and Termination Date.

See the help topic titled How do I assign the active date range? and How do I deactivate the account?

9. Set up the checkbox titled Use this Title as the Default Title.

10. Set up the checkbox titled Allows Budget Amounts.

A budget is a quantitative expression of a plan of action that shows how a firm will acquire and use resources over some specified period of time. Use Allows Budget Amounts to use this account to enter budget amounts.

See the help topic titled Does this account allow budget amounts?

11. Set up the checkbox titled Prompt for Fixed Asset Information.

You can set up an account to prompt a user to enter fixed asset information when they enter a fixed asset account. A fixed asset is a long-term tangible piece of property that an organization owns and uses and it is not expected to be converted into cash in less than one year's time. For example, land, buildings, vehicles, equipment, computer hardware, and machinery. If the account records transactions for fixed assets, you can use this option to ask the user to enter the fixed asset name and description.

See the help topic titled Can I prompt for fixed asset information?

12. Select the Reporting Categories.

The Reporting Categories are categories that you can set up to report amounts for a group of accounts. For example, the AP Accounts Payable Amounts category to report amounts for 02-2110, 10-2110, 51-21100, 52-21100, 53-21100, 79-21100, and 81-21100. Jane uses the Reporting Categories field to add the account that she is adding to the Chart of Accounts to a AP Accounts Payable Amounts category.

See the help topic titled How do I add/remove reporting categories?

13. Click to select the Account 2 tab.

14. Set up the checkbox titled Set As the Closing Account.

Use Close to Account to move the balances of an account to a fund balance account of your choice. This option works with GASB 34 that requires five fund balances that are set up by restriction.

Restrictions:

You cannot close to an account that is set up to close to the current account.
You can (1) set this account as the closing account, (2) zero the account balance at the end of the year, or (3) close to account.

Example: Grant accounts are typically restricted. Instead of transferring to a regular fund balance. You can send grants to a restricted fund balance. This separates the grant money, and keeps it separated, from the regular fund balance.

See the help topic titled How do I set up a closing account?

15. Set up the checkbox titled Zero the Account Balance at Year End.

Use this option to close the balance on the balance sheet at the year-end to the closing account. The balance is set to zero.

See the help topic titled Can I zero the account balance at year-end?

16. Set up the checkbox titled Close to Account.

Use Close to Account to move the balances of an account to a fund balance account of your choice. This option works with GASB 34 that requires five fund balances that are set up by restriction.

Restrictions:

You cannot close to an account that is set up to close to the current account.
You can (1) set this account as the closing account, (2) zero the account balance at the end of the year, or (3) close to account.

See the help topic titled How do I set up a closing account?

17. Select the Accounts that Close to This Account.

The Accounts That Close to This Account displays the account numbers for the accounts that are set up to zero the account balance at the year-end and copy the account balance to the current account. In other words, this is a list of accounts that close to the current account.

See the help topic titled Which accounts close to this account?

18. Assign the Cross-reference Account and Cross-reference Title.

A cross-reference account allows you to link the current account to another account for state reporting.

See the help topic titled How do I cross-reference accounts?

19. Assign the State Budget Code and State Budget Title.

Connect can link the current account to another account number and title for state reporting. The linked account number and title is the information that will print on the state report in place of the account number and title assigned in the Chart of Accounts.

See the help topic titled How do I set up accounts for state reporting?

20. Click Save (CTRL+S).

The Chart of Accounts is saved.