Читать книгу Xero For Dummies - Heather Smith - Страница 37

Each element of the chart of accounts, known as a general ledger account, is allocated an account type, and the account type that’s allocated affects how the information is grouped on financial reports. Figure 2-5 shows where the different account types are grouped on two popular reports: The Profit and Loss Statement, and the Balance Sheet.

Source: Xero 2022

FIGURE 2-5: How account types are grouped on your reports.

Depending on how you set up your accounts, not a lot of difference may exist between some of the account types. Fixed Assets and Non-Current Assets, for example, could be deemed the same. Or you could have Fixed Assets defined as representing an asset with a medium life span and Non-Current Assets as an asset with a long life span.

The following sections provide a guide to the different account types. Grab a pad and pencil and, as you read through the lists, jot down how they apply to your own business, decide your interpretation and stay consistent.