Why You Need a Chart of Accounts

A chart of accounts is the foundation of your financial system. It’s a complete list of every category where money can come from or go to. Without a well-organized chart of accounts:

• You can’t track where money is being spent
• Reports become meaningless
• Budget comparisons are impossible
• Audits become nightmares

BeeKeeper creates a standard chart of accounts for PTAs when you sign up, but you can customize it to match your organization’s needs.

Understanding Account Types

Assets (What You Own)

Assets are things of value your organization possesses:

Normal Balance: Debit (increases with debits)

Liabilities (What You Owe)

Liabilities are obligations to pay:

Normal Balance: Credit (increases with credits)

Equity (Net Worth)

Equity represents accumulated value:

Normal Balance: Credit (increases with credits)

Income (Money Coming In)

Income accounts track revenue sources:

Normal Balance: Credit (increases with credits)

Expenses (Money Going Out)

Expense accounts track spending:

Normal Balance: Debit (increases with debits)

Managing Your Accounts

Viewing Accounts

1. Go to Accounts from the main menu
2. Accounts are grouped by balance sheet category (Assets, Liabilities, Equity) with group totals, plus Income and Expense sections
3. Each account shows its code, name, type, and current balance
4. Use the search bar to find accounts by name or code
5. Filter by account type using the type dropdown
6. Sort by clicking column headers (code, name, type, balance)

Creating a New Account

1. Click New Account
2. Select the Account Type first - BeeKeeper will auto-fill the next available account code for that type (rounded to the nearest 10)
3. Fill in the remaining fields:
   • Name: Descriptive name (e.g., “Spring Carnival Income”)
   • Code: Auto-suggested, but you can customize
   • Form 990 Line (optional): Map to a specific Form 990-EZ line for tax reporting
4. Click Save

Editing an Account

1. Click the account name to view details
2. Click Edit
3. Make your changes
4. Click Save

Note: You cannot change an account’s type after creation. This ensures the integrity of your financial records.

Account Detail Page

Each account has a detail page showing:

• Ledger: All journal entries affecting this account, sorted by date with running balance
• Bank Tab: If a bank account, shows imported transactions pending review (see Bank Connections)
• Reconcile Tab: Bank reconciliation interface (see Bank Connections)
• Import: Upload transactions from QFX, OFX, CSV, or XLSX files
• New Transaction: Quick form to record a simple transaction directly

Transfer Funds

Move money between accounts without manually creating journal entries:

1. Go to Accounts
2. Click Transfer Funds
3. Select the From account and To account
4. Enter the amount
5. Click Transfer

This creates a balanced journal entry automatically.

Archiving an Account

When an account is no longer needed:

1. Open the account
2. Click Archive
3. Confirm the action

Archived accounts:

• Don’t appear in dropdown menus
• Preserve historical transactions
• Can be restored if needed

Deleting an Account

Accounts with transactions cannot be deleted - you must archive them instead. Accounts with no transactions can be permanently deleted.

Exporting Accounts

To export your chart of accounts:

1. Go to Accounts
2. Click Export
3. Choose format: CSV or XLSX
4. The file downloads to your computer

Account Codes

Account codes help organize and sort your accounts. Common schemes:

BeeKeeper auto-suggests codes when you create accounts (rounded to the nearest 10 within the type range), but you can customize them. Codes are helpful for:

• Sorting accounts in reports
• Mapping to Form 990-EZ categories
• Matching your previous system

Tips for a Clean Chart of Accounts

Keep It Simple

• Don’t create an account for every possible expense
• Group similar items (e.g., “Office Supplies” not “Pens”, “Paper”, “Staples”)
• You can always add detail in transaction descriptions

Use Consistent Naming

• Start expense accounts with the category: “Program - Art Enrichment”
• Use the same format throughout: “Fundraiser - Spring Auction” not “Spring Auction Fundraiser”

Plan for Reports

• Think about what you want to see on your Profit & Loss
• Create accounts that match your budget line items
• Consider what your board needs to review

Year-End Best Practices

• Review accounts before the new fiscal year
• Archive any accounts no longer needed
• Add new accounts for planned activities

The “Uncategorized” Account

BeeKeeper automatically creates an “Uncategorized Expense” account. This catches:

• Imported transactions that don’t match any rules
• Transactions you haven’t categorized yet

Best Practice: Regularly review uncategorized transactions and assign them to proper accounts.

Limitations

• Maximum 500 accounts per organization
• Account names must be unique within each type
• Account type cannot be changed after creation
• Cannot delete accounts with transactions (archive instead)
• Cannot merge accounts (must manually recategorize transactions)

Common Questions

Can I rename an account? Yes, renaming an account updates all historical transactions.

What happens if I archive an account with a balance? The balance remains in reports. Consider transferring the balance first.

Can I have sub-accounts? Not currently. Use naming conventions like “Fundraising - Event Name” to group related accounts.

How do I fix a transaction in the wrong account? Edit the journal entry and change the account assignment.