6 The first login 6.3 Setting up a bank account or credit card 6.5 Checking sales tax rates

6.4 Checking and adjusting the chart of accounts

First and foremost the chart of accounts serves to register income, expenses, assets and liabilities in categories which support financial decision making or regulatory requirements. When checking his chart of accounts, this is the first thing Jack checks for.

Many business events in LedgerSMB trigger the creation of financial transactions. If the configuration required for these transactions to be created isn’t in place, users won’t be able to complete their workflows.

6.4.1 Accounts list

Jack wants to make sure his chart of accounts fits his purposes. To perform these checks Jack goes into the General Journal $\rightarrow$ Chart of Accounts page. For now, he finds the ledger to be in order. Although the single Sales account stands out a bit against the numerous expense accounts, it turns out that there is also a single Purchases account on which all the expenses for parts purchases are going to be booked.

He decides that if this isn’t enough, he can add accounts later. ¹¹ 1 Note that Jack will discover in Section 7.4 on page 7.4 that he does indeed need to create additional accounts to support sales and purchase discounts.