Create or edit a category
This explains how to create and edit categories, and what each of the fields are for.
categories can also be known as nominal accounts or nominal codes.
What are categories
We use categories to group your transactions so you can see how your business is performing.
Each category has
Some categories are used automatically by Accounting Start when recording transactions to ensure that items such as your VAT are recorded correctly. These are known as control accounts and can't be edited. Control accounts are marked with an asterisk.
Create a category
- From Settings, then Business Settings, choose Chart of Accounts.
- Select New category.
- Enter the details and Save. The fields marked with asterisk * are mandatory
Edit a category
You can change of the details of a ledger account.
- Changes how the values are included on your reports
- Does not update transactions are already entered.
Change the ledger name:
From Chart of Accounts, select the category you want to edit.
Edit the Ledger Name to change how the category displays in the Chart of Accounts.
Edit the Display Name to change how the category displays in the rest of the program.
Delete a category
Once a category is created, it cannot be deleted.
If you no longer want to use a category, then exclude it from the chart of accounts. This removes it from selection lists when creating transactions.
You cannot exclude control accounts (indicated with an asterisk) from the chart of accounts.
- Click Settings, then Business Settings, Chart of Accounts.
- Open on the relevant category.
- Clear the Included in Chart check box.
- Click Save.
If you're not sure what all the fields are for, here is an explanation
Types and groups
Each ledger account has a
This is used to group ledger accounts together and make sure they are report correctly on your profit and loss and balance sheet reports.
|Income from the things you sell|
|Other sources of income|
|Expenditure||Direct expenses||Costs directly related to things you sell such as packaging, labour charges, import duty etc.|
|Overheads||Other costs such as staff wages, utility bills, business expenses etc.|
|Asset||Bank||Balance of your bank accounts and credit cards|
|Fixed assets||Value of your assets such as your property, any equipment you own, any company cars or other vehicles.|
|Current assets||Value of your stock and the amount owed to you by your customers.|
|Liability||Current Liability||Amount you owe to creditors such as the total amount owed to your suppliers, amount owed to HMRC for VAT and PAYE|
|Capital||Equity||Any capital bought into the business such as your profit (or loss)|
This is a number you can use to help you find and sort your categories.
If you've moved from another accounting system such as Sage 50, we match with the codes you have used previously.
You can use any number that suits you. By default we have used the following numbers.
Assets = 0001 – 1999
Liabilities = 2000 – 2999
Capital = 3000 – 3999
Income = 4000 – 4999
Expenditure – Direct expenses = 5000 – 5999
Expenditure – Overheads = 6000 – 9999
Set a default VAT rate on categories, to help make sure transactions are entered with the correct VAT rate.
When the category is selected, the VAT rate set on the category is entered automatically. You can change the VAT on each transaction.
This is useful when transactions recorded against a particular category, will use the same VAT rate most of time. For example, your sales are likely to be charged at the standard VAT rate so setting a default on the your sales categories may be useful.
Where VAT is not required for particular categories, just choose No VAT.
To help reduce errors, we've set up categories so they only be selected on certain types of transaction.
For example, sales categories can be selected on sales transactions.
The visibility check boxes determine which transactions the category can
Choose the most appropriate one for you business. All categories are available on journals and reports.
You buy stationery for the office and enter the this against the Office Stationery category. You return some items and need to record the refund you receive. As the Office Stationery category is set only be visible on Other Payments, you can't select it when entering an Other Receipt. To resolve this, just change the Visibility on the Office Stationery category to include Other Receipt.
If you can't see a category, check the visibility setting.
Errors creating categories
If you see the following error:
Sorry about this – It looks like we’re experiencing a technical problem
Check the following:
- Make sure you are not trying to use a nominal code that already exists.
- Make sure that Bank is not selected under Visibility. Only ledger with a
typeas Bank can also have their Visibility set to Bank.
If you are trying to set a Current Asset with a code greater then 1300, it may give you a technical error, if this occurs, choose a different category (we recommend Bank) and Save, then go back in and edit the ledger to change the category back to Current Asset and Save again.