how to maintain charts of accounts

HOW TO MAINTAIN CHARTS OF ACCOUNTS

If you are a new company and you want to make charts of accounts for your company then following is the procedure by which you can maintain charts of accounts.

o   First set up is to open the charts of accounts window. This can be done by opening the peach tree software. On the upper left corner of the window there will be a maintain option.

o   Click on the maintain option and following options will appear as follows.

o   Click on the maintain charts of accounts option and following window will appear.

o   Now you can start making your charts of accounts. For that purpose you have to fill the ID, Description and account type.

o   The account IDs for the assets, liabilities, equity, revenue and expenses will be different.

o   This is done so to differentiate the different accounts from each other.  So in case it is easy to differentiate them. And by given the relevant code of the account we can open that account easily.

o   Now you will add the Id and description of the account in the relevant places. You will just press the TAB key and you will be in the ID column.

o    Again by pressing the TAB key you will be in the description column.

o   After this you will press the tab key and you will be in the account type column. From there you can select the relevant account type of your given descript account.

o   After full filling all the information in the relevant accounts you will press the ALT+S key to save the accounts. To check your account after it is saved just enters the ID and your account will appear.

o   In this way you can further make your accounts in the Peach Tree Software. To check you all accounts detail you can press the button very next to account ID and all your accounts will be shown.

o   After pressing this magnifier button your all accounts detail will appear.

o   You can also see the lists of your accounts by closing the charts of accounts and in the main page in the upper right corner there will be a “REPORT” option.

o   When you will click on the report option further options will be open.

o   From these options you will select the general ledger option.

o   In general ledger further there will be charts of accounts option.

o   And there a list of your all accounts will be present.

HOW TO MAKE CORRECTION

o   Now if your all accounts are made in the charts of accounts and during reviewing your account you fin out that one of your account has wrong ID.

o   Then you will go to that ID and will put the curser there and change your ID.

o   After changing the ID press the save button which is present in the upper left corner.

o   Your corrected ID will be saved.

o   In the same way you can change your account type and account description.

HOW TO DELETE THE ACCOUNTS

o   While reviewing your accounts you realize that you have made two accounts of same description.

o   You want to delete that account.

o   For that purpose you will open that account.

o   In the upper left corner of your account delete option is present.

o   You will simply press that key and your account will be deleted.

HOW TO INACTIVE AN ACCOUNT

o  If you want to inactive your charts of account. Following is the procedure.

o   First of all you will the account which is to be inactive.

o   Then on the right side of the charts of account bar an inactive option is present.

o   Just click on that option and your account will become inactive.

o   After clicking the inactive option just press the ALT+S and your account will become inactive.

HOW TO ENTER THE BEGINNING BALANCES

To enter the beginning balances in the charts of accounts following procedure must be use:

o   First of all go in the maintain charts of accounts window. There at the right side of the window a beginning balances option will be present.

o   When you will click on that option following window will appear.

o   Now you will select the appropriate period for entering your transactions. You will take one period back because for e.g. if you want to record the transactions of January then if you will select the January 2009 then the transaction of January will be recorded in the February. Therefore, to remove this error we will take one month back from the month of transaction to be recorded.

o   After you will select the appropriate month and year following window will appear.

o   Now you will add the values in the respective accounts. The software will automatically arrange them in there debit and credit side.

o   After entering all the data a trial balance will be created.

o   After your trial balance will be created you can see the net income along with your trial balance balances.

o   In case there is a difference present between your two sides it will be shown in the head of the difference balances.

o   You can also create the accounts when you are entering the values in the trial balance.

o   In this way you will enter the account and then you will click the OK option.

o   In this way your account will be added.

o   One thing must be kept in mind that before entering the values in the trial balances the retained earning account must be formed. If you will try to made the account while entering in the trial balances then it won’t be added.