A brief description of the GL Accounts in Control is provided in the following sections.

Asset Accounts

  • Bank Account - Bank accounts are a special type of current asset usually used for tracking liquid assets in a checking or savings account. Some features, like reconciliation, are only available for bank accounts.
  • Accounts Receivable - A type of current account designated for holding the amount owed to you by customers for payment of your invoices. They are sometimes called trade receivables.
  • Current Assets - Also called liquid assets, Current Accounts hold assets used in the daily (current) operation of the business. Traditionally, assets that are on the books for less than 12 months (or cycle through the books in that amount of time).
  • Inventory - A type of current account designated for holding the value of raw materials inventory.
  • Fixed Asset - A type of long-term asset, also known as property, plant, and equipment (PP&E), fixed assets track assets and property which cannot easily be converted into cash. In most cases, only tangible assets are referred to as fixed.
  • Other Asset - A miscellaneous classification for assets that you can use as you wish.
  • Depreciation - Depreciation is a special type of contra (negative) fixed asset account term. It contains the reduction in value for an asset roughly corresponding to normal wear and tear. It is of most use when dealing with assets of a short, fixed service life, and which lose value over that life.

Liability Accounts

  • Accounts Payable - A type of current liability account showing how much is owed for goods and services, but hasn't paid yet. When you receive an invoice you add it to the file, and then you remove it when you pay. Thus, the A/P is a form of credit that suppliers offer to their purchasers by allowing them to pay for a product or service after it has already been received.
  • Credit Card Account - A special type of current liability account corresponding to credit extended from a credit card provider (MasterCard, Visa, Discover, American Express, etc.).
  • Current Liability - Liabilities that are reasonably expected to be liquidated within a year. They usually include payables such as wages, accounts, taxes, and accounts payables, unearned revenue when adjusting entries, portions of long-term bonds to be paid this year, short-term obligations (e.g. from purchase of equipment), and others.
  • Long Term Liability - Liabilities that are reasonably expected not to be liquidated within a year. They usually include issued long-term bonds, notes payables, long-term leases, pension obligations, and long-term product warranties. In these liabilities a company has to pay after a fixed or long period. For example, long term bank loans up to 1 year or more than one 1 year.
  • Other Liability - A miscellaneous classification for liabilities that you can use as you wish.
  • Sales Tax Liability - A special type of current liability account used for tracking tax revenue owed to a specific taxing authority.
  • Other Tax Liability - A special type of current liability account which may be used as you wish. Often this is used for payroll and income tax obligations.

Equity Accounts

  • Equity Account - Equity accounts track the (book) value of the business and correspond to contributions from owners and income from past operations.

Income Accounts

  • Income Account - Income accounts record the income from sales.
  • Other Income - Other income accounts are normally reserved for income from non-operational (a.k.a. extraordinary) aspects of the business, such as the sale of a building or part of the company. Other income is broken out below separately on the Income Statement.

Expense Accounts

  • Wage - Wage accounts are a special type of expense account for tracking employee related costs.
  • Cost of Goods Sold - COGS accounts are a special type of expense account for tracking costs associated with specific orders (direct costs). Indirect costs are recorded in expense accounts.
  • Expense - An expense account records the costs of using an asset or incurring a liability.
  • Other Expense – Other Expense accounts are normally reserved for expenses from non-operational (a.k.a. extraordinary) aspects of the business, such as writeoffs from business shutdowns. Other expenses are broken out below separately on the Income Statement.

Grouping Account (non-recording)

  • Account Group - An Account Group is a non-recording account used for grouping related accounts. Account Groups produce a tree or hierarchy of accounts that is more intuitive and easier to navigate.
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