Magaya Software Accounting Manual

ADD TO THE CHART OF ACCOUNTS
• Expense: Used to define what you are spending money on.
• Cost of Good Sold: Use this to determine the cost of the items you
sell.
• Bank: Use this account for checking and savings transactions,
money market accounts and petty cash.
• Undeposited Funds: Money you hold to deposit later.
• Fixed Assets: For equipment or furniture that will not be converted
to cash within one year.
• Other Assets: Use this account designation for any asset that cannot
be classified as Fixed or Current.
• Other Current Assets: For notes receivable that are due within one
year, inventory value, etc.
• Long Term Liability: Accounts that are due over a long period of
time such as a mortgage, over one year.
• Other Current Liability: Due within one year. Examples are sales tax.
• Equity: The net worth of the company.
• Credit Card: Create one “Credit Card” account per card to track
business expenses paid for with the credit card. (You will also need
to add the credit card company as a Vendor in the Maintenance
folder.)
3) Enter the account name and number.
4) Select a parent account as needed. This allows for grouping accounts in
reports (such as all freight accounts grouped together or all documentation,
etc.)
5) Options: Add any notes as needed. The “Inactive” box is available if you
do not want to use this account in the future.
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