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 Bookkeeping > Chart of Accounts from the sidebar (admin only)
2. Accounts are grouped by type, with Income and Expense columns first, followed by Assets, Liabilities, and Equity
3. Within each type, accounts are ordered by account code, then name
4. Each account shows its code and name; if the account has a description, hover the info icon to see it

To see account balances, visit Bookkeeping > Banking (for bank and balance-sheet accounts) or open an individual account’s detail page.

Creating a New Account

1. Click Add 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. On the Chart of Accounts page, click the pencil icon next to the account
2. Make your changes in the Edit Account window
3. 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:

• Transactions: All journal entries affecting this account, sorted by date with running balance
• Needs Review: If a bank account, shows imported transactions pending review (see [Imported Transactions](imported-transactions))
• Reconcile: Bank reconciliation interface (see [Bank Reconciliation](reconciliation))
• 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 Bookkeeping
2. Click Transfer Funds
3. Select the From account and To account
4. Enter the amount
5. Click Save

This creates a balanced journal entry automatically.

Archiving an Account

When an account is no longer needed:

1. Edit the account (pencil icon)
2. Check the Archive box
3. Click Save

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.

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. It is used as a fallback when:

• An approved expense item has no category assigned
• A matching rule (or its vendor) has no target account set

Unmatched bank imports are not sent here automatically - they stay in the Needs Review queue until you categorize and accept them.

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

Limitations

• Account codes must be unique within your organization; duplicate names are allowed (the bulk import skips duplicate names of the same 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? Archived accounts are excluded from financial reports, so transfer or zero out the balance before archiving.

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.