You can use this screen to create a new account in your Uwazi database. This screen has the following fields:
- Account code: A code to give your new account. Account codes must be unique in your Uwazi database. Aside from that, you can call it whatever you desire. There is no need for it to be numeric or letters only. It is helpful for the code to be convenient as you can use the code later to select the account. Your accountant may give you a code to use. The examples on Uwazi help pages use numbers in a X-XXXX format, however you do not need to use that format
- Account name: A name to give your new account. Account names must be unique in your Uwazi database. You should give accounts meaningful names as you can use it to refer to the account and it is used on financial reports
- Description: An optional description of your new account
- Contains sub-accounts: Can other accounts be placed underneath this one as sub-accounts (or child accounts). Select the checkbox if you want this account to contain these sub-accounts. Doing this makes this account a header account
- Account open for entries: Can this account be used in transactions, such as Invoices. Once an account is used, it can’t be deleted. You can; however, use this checkbox to prevent the account from being used for future transactions
- Account type: This specifies the type of this account. See below for more detail
- Cashflow type: This specifies the cashflow type of this account. See below for more detail
Once you have filled in the above fields, if you then wish to proceed and create the account, then press the “Submit” button. You can press the “Cancel” button at any time if you do not wish to proceed. Pressing that button means the account will not be created.
Account types are used in Uwazi to apply meaning to accounts. Different accounts are used for various purposes.
- Cash at hand: This account is used for physical cash that your business has in possession. An example of this is a petty cash or impress system float
- Bank account: This account is your Uwazi database record of a bank account – including debit cards. Note that from your’s (and your Uwazi database’s) perspective, positive bank account balances are represented as accounting debits, while your bank will represent these as accounting credits. This is because your positive bank balance is a debt to them
- Accounts receivable: This account is used to manage your accounts receivable or trade debtors
- Other receivable: This account manages other short term receivables that don’t arise from ordinary business trade. Examples include loans to staff or a business has purchased equipment that you have sold as you no longer use it in your business
- Other current asset: This account manages current assets that are not otherwise covered in this list
- Property Plant and Equipment: Accounts for these items at cost and accumulated depreciation
- Other asset: Any other non-current asset. Examples can include goodwill and “right to use” value of leases.
- Credit card: This account is used to manage a credit card
- GST control: This account is used to manage GST/VAT or sales tax that you have received. If you can claim input tax credits, it can also be used to manage GST/VAT that you can recover from the government. You may have one or two of these accounts in your database depending on how the database was initially setup. It is possible to have more than two if you have other transaction taxes that you need to track and you wish to be separately reported on your financial statements
- Accounts payable: Used to track payables to your suppliers (trade creditors)
- Payroll payables: Used to track payables arising from employing staff. Examples of these kinds of accounts include Wages payable, Employee tax payable, Pension/Superannuation payable, Workers compensation payable
- Other payable: Other short term payables that are not otherwise covered by this list
- Drafts: Any drafts your organization has made
- Commercial bills: Any bills you have issued
- Other current liability: Any other short term obligation of your business
- Notes or bonds: Any face value of notes or bonds that you have issued
- Finance leases: The principle value of lease obligations
- Other liability: Any other non-current liability
- Reserve: An amount set aside by you or your corporation directors for some purpose. Some accounting standards mandate certain reserves
- Other equity: Any other equity account. Examples include retained earnings – or surplus for a not for profit, tax loss benefits
- Sales: Accounts to record ordinary sales revenue in your business
- Other revenue: Accounts to record non sales revenue that is regular in your business. A not for profit would record donations received in such an account
- Investment income: Dividends and benefits received from investments would be recorded in this kind of account
- Capital gains: Gains from selling investments would be recorded in this kind of account
- Other income: An account to record any other kind of income. Examples include gains on equipment disposal, government grants received
Cost of sales accounts
- Direct Cost of Sales: These accounts are used to record costs that directly relate to your sales. You may be required to track these for tax purposes. Examples include cost of goods sold for physical products. Direct outgoings for services provided, such as materials costs are examples of cost of sales for non-physical products
- Other Cost of Sales: Use these accounts to record other times that are part of your cost of sales. For physical goods, cost of goods sold also include freight, insurance and other costs associated with obtaining the goods.
- Fixed expenses: These accounts are used to record expenses, that tend not to change with the volume of sales or value of your sales revenue
- Variable expenses: Variable expenses tend to be proportional to your sales.
Special income accounts
- Special income: Only one type can be selected for these kinds of accounts. Special income is separated from other income accounts in your financial reports. It can be used for extraordinary items.
Special expense accounts
- Special expense: Only one type can be selected for these kinds of accounts. Special expenses is separated from other cost accounts in your financial reports. It can be used for extraordinary items.
- Operating cashflows: Transactions on this account are ordinary business operations
- Investing cashflows: Transactions on this account represent business investing. This includes purchases of capital equipment
- Financing cashflows: Transactions on this account are financial. This includes loans, interest payments on loans, contributions from owners and benefits to owners paid (eg dividends)