Overview
The chart of accounts is the financial backbone of QBM. It organizes the accounts used by sales, purchasing, banking, inventory, payroll, journal entries, and reports. A clear account structure helps keep financial statements readable and consistent.
Main purposeOrganize every financial posting into the correct account structure.
SupportsTransactions, reports, year-end work, and account-level review.
Business valueCleaner reporting, easier analysis, and more reliable control over postings.
Where To Find It
Common Path: Accounts > Account List or Chart of Accounts > Open Account Detail
Related reporting views may also appear in reports such as the account list or chart of accounts report.
How The Chart Of Accounts Works
Each financial transaction in QBM posts to one or more accounts. Accounts are normally grouped by type and can be arranged under parent accounts to create a clear hierarchy for reporting.
- Header or parent accounts help organize the chart without always holding direct posting activity.
- Sub accounts sit under a parent and can provide more detail for reporting and control.
- Account types control the financial nature of the account, such as asset, liability, income, or expense.
- Special account settings can also support bank account behavior, tax-related use, locations, and other business needs.
Note: The chart of accounts should usually follow an agreed finance structure. Avoid casual changes once live posting has started unless finance has reviewed the impact.
Account List And Structure
| List Or Column | Purpose |
|---|---|
| Name | The main account name displayed in lookups and reports. |
| Number | The account code when your company uses account numbering. |
| Description | Short explanation of what the account is for. |
| Type | The financial category of the account, such as asset, liability, income, or expense. |
| Parent | The higher-level account that organizes related sub accounts. |
| Balance | The current balance for review and reporting. |
| Currency Balance | The balance in currency-sensitive situations where that view is used. |
Account Detail Fields
| Field | What It Means | When To Use It |
|---|---|---|
| Name | The main account name. | Use a clear finance-friendly label. |
| Account Number | The account code if numbering is enabled. | Use when your chart follows a coded structure. |
| Account Type | The financial behavior of the account. | Choose carefully because it affects reporting and how users interpret the account. |
| Parent Account / Sub Account | Places the account under another account in the hierarchy. | Use when a detailed account should roll up into a broader reporting account. |
| Header Account | Marks the account as a structural or grouping account. | Use when the account is mainly for organizing lower-level accounts. |
| Description | Explains the purpose of the account. | Helpful when several similar accounts exist. |
| Category | Further classification of the account within the company's structure. | Use when your business groups accounts by an internal category system. |
| Currency | The currency behavior of the account. | Review when the account is used in foreign-currency situations. |
| Location | The location context linked to the account where applicable. | Useful when location-based accounting control is part of the design. |
| Tax Code | Default tax-related behavior connected to the account. | Use only where your accounting design requires tax-driven account defaults. |
| Class | An optional classification field used by some businesses for further grouping. | Use only if your reporting or compliance structure needs it. |
| Inactive | Stops normal use of the account while keeping historical postings. | Use when an account should no longer be selected for new transactions. |
| Bank Account Type | The type of bank account linked to this account when it is used as a bank ledger. | Relevant for bank-related accounts only. |
| Bank Account Number | The bank account number or external bank reference. | Use for bank accounts where the company wants the detail stored. |
| Opening Balance And Date | The starting balance for go-live or migration work. | Use only for controlled initial setup or approved correction work. |
| Notes | Internal notes linked to the account. | Use for useful accounting context, not casual reminders. |
Recommended Workflow
- Plan the account structure first, including numbering, parent accounts, and major reporting groups.
- Create header accounts where needed to organize the chart clearly.
- Create detailed posting accounts under the correct parent accounts.
- Set account type, category, and any bank or tax-related settings carefully.
- Enter opening balances only during controlled go-live or approved correction work.
- Review the account list and related reports to confirm the hierarchy appears correctly.
Best Practice
Best practice: Keep the chart of accounts as simple as possible while still giving finance the reporting detail it needs. Too many overlapping accounts usually create confusion and posting mistakes.
Important: Avoid changing account types, parent structure, or opening balances after live use without finance review. Those changes can affect reports, comparisons, and downstream posting behavior.
- Use descriptions to explain the real business purpose of similar accounts.
- Inactive old accounts instead of deleting them if prior history matters.
- Review bank-specific accounts carefully so their settings match actual bank use.
- Coordinate structural changes with your accounting lead before saving.