Bank - Your basic account. This account can make transactions with other bank, cash, credit card accounts, as well as with income and expense accounts. Bank accounts maintain a balance. Bank accounts cannot make transactions with accounts receivable nor accounts payable.
Cash - Cash accounts are similar to bank accounts. Cash accounts can make transactions with other bank, cash and credit card accounts, as well as with income and expense accounts. Cash accounts maintain a balance. Cash accounts cannot make transactions with accounts receivable nor accounts payable.
Credit Card - Credit card accounts are similar to bank accounts. Credit card accounts can make transactions with other bank, cash and credit card accounts, as well as with income and expense accounts. Credit card accounts maintain a balance, which is converted from negative to allow the account to match statements from your credit card institution. Credit card accounts cannot make transactions with accounts receivable nor accounts payable.
Income - Income accounts are special accounts used to signify income by type. These accounts are used to deposit money into your bank, cash, and credit card accounts. Income accounts cannot make transactions with other income accounts nor with expense accounts. Income accounts are the only accounts that can make transactions with Accounts Receivable, as the Receivable payment must come from an income account type. Income accounts do not maintain a balance as they are simply an endless source of possible income. Income accounts can be denoted as taxable or non-taxable, which is used for reports.
Expense - Expense accounts are special accounts used to signify expenses by type. These accounts are used when spending money from your bank, cash, and credit card accounts for business expenses. Expense accounts cannot make transactions with other expense accounts nor with income accounts. Expense accounts are the only accounts that can make transactions with Accounts Payable, as the Payable Bill must go to an expense account type. Expense accounts do not maintain a balance as they are simply an endless destination of possible expenses. Expense accounts can be denoted as taxable or non-taxable, which is used for reports.
Accounts Receivable - Accounts receivable is a special account type used to show future income. You enter "receivable payments" into Accounted, and then later "receive payments" when the payment actually comes in. Accounts receivable can only make transactions with income accounts. Accounts receivable maintains a balance that is intended to eventually balance out to zero once all receivable payments have been received.
Accounts Payable - Accounts payable is a special account type used to show future expenses. You enter "payable bills" into Accounted, and then later "pay bills" when the the bill is actually paid. Accounts payable can only make transactions with expense accounts. Accounts payable maintains a balance that is intended to eventually balance out to zero once all payable bills have been paid.
Asset - Asset accounts can be used to track anything owned, either tangible or intangible. Paying money into an asset account will raise the balance of the account. These accounts are used in many reports in Accounted.
Liabilities - Liability accounts are used to track anything that is owed to others. Liabilities are similar to Accounts payable, but more long-term. Paying money into a liability account will lower the balance of the account. These accounts are used in many reports in Accounted.