What is the Chart of Accounts
The chart of accounts is a listing of all the financial accounts in the general ledger of a company. In short, it is an organizational tool that provides a digestible breakdown of all the financial transactions that a company conducted during a specific accounting period, broken down into subcategories.
For a property managers and owners using Rentroom, the COA might include these sub-accounts under the assets account:
- Savings account
- Petty cash balance
- Accounts receivable
- Undeposited funds
- Inventory assets
- Prepaid insurance
Liabilities account may have sub-accounts, such as:
- The company credit card
- Accrued liabilities
- Accounts payable
- Payroll liabilities
Rentroom's Chart of Accounts
In Rentroom's accounting module, the user will have the ability to create their own COA. However, Rentroom accounts also come pre-configured with common accounts that are likely used by most(if not every property manager or owner).
Creating a New Account
- To create a new account, navigate to "Accounting" and open the "Chart of Accounts" from the sub-menu
- Click the "Add Account" button in the top right of the screen
- A modal will pop-up so you can configure your new account
- Chose the account type, enter an account name, and designate an account number
- Select a sub account only if applicable
- Designate an account as a "deposit" account only in the case of creating an "Undeposited Funds" account
- Click "Save"