Once you completely created a new company, you will notice there are a list of accounts that are already in the software. If you are from a non-accountant background and not familiar with chart of account, no worries here is the article to help you understand more about chart of account.
If you want to proceed to use the pre-created account, below is some information for you.
Account | Explanation |
Cash on Hand | Your petty cash account. Can use this account when you receive money or pay in cash. |
Bank Account | Your bank account. Can use this account when you receive money or pay in bank. |
Account Receivables | Customers owe your company for products or services that have been invoiced. System will auto post to this account when you record an invoice. |
Inventory | Account to keep track of your inventory value. When you are creating an Inventory product, the system will auto select this as your inventory default account. |
Undeposited Fund | Holding account that tracks payments received from customers that have not been deposited to your bank account. |
Property, Plan & Equipment | Your asset account, can use to record your fixed asset transaction. Examples of PP&E include buildings, machinery, land, office equipment, furniture, and vehicles. |
Credit Card Accounts | Credit cards allow you to make purchases on credit without having to put up cash at the point of sale. |
Account Payables | Money owed to vendors or suppliers for goods or services purchased on credit. System will auto post to this account when you record a purchase bill. |
SST Payables | When you activated the SST Sales Tax and record your Sales Invoice using sales tax code (PSL5 and PSL10). The SST amount automatically will goes to this account. |
SST Deferred | When you activated the SST Service Tax and record your Sales Invoice using service tax code (PSV6). The SST amount automatically will goes to this account. |
EPF Control | The EPF contribution amount from employee side. |
SOCSO Control | If you are recording an SOCSO component to pay the SOCSO for employee and employer portion to PERKESO, you need to park the SOCSO amount in this account. Until you paid the SOCSO to PERKESO. |
EIS Control | If you are recording an EIS component to pay the EIS for employee and employer portion to PERKESO, you need to park the EIS amount in this account. Until you paid the EIS to PERKESO. |
MTD Control | MTD is a mechanism in which employers deduct monthly tax payments from the employment income of their employees. Before you pay to LHDN, the MTD portion amount needs to park under this account first. |
Salary Control | If you are recording a salary to your staff, example for the month of January but you haven't paid to your staff yet, you need to use this account to park the staff salary amount, until you paid the salary to them. |
Good Received Not Invoiced | This account will automatically occur when you record a transaction under Good received notes. |
Retained Earnings | Retained earnings are left over profits after accounting for dividends and payouts to investors. The figure are took from last financial year profit amount. (Automatically posted) |
Owner's Share Capital | The amount of money the owners of a company have invested in the business. Normally in the early stage when a company starts up. |
Sales Income | Income received by a company from sales of goods or the provision of services. You can use this account when you record a sales transaction. |
Discount Given | Discount given to your customer when recording a sales. It will reduce your sales amount. When you put the figure in the discount field, the system will automatically post to this account. |
Interest Earned | Interest when your customer pays later than the due date. System will automatically post to this account when you perform Run Interest Invoices (For late payment). |
Cost of Sales | Your cost when recording purchases for a product (For Non Inventory). If you record an Inventory product, this account will automatically be posted when you record a Sale Invoice. |
Inventory Adjustment | When you record a stock adjustment to adjust your inventory (Increase/Decrease) using the stock adjustment module, the system will posted to this account. |
SST Expense | When record a non claimable SST transaction in purchase or money out module. Use the tax code PLS10, PLS5, and PSV6. |
EPF - Employer's Contribution | Employer portion for staff EPF is considered company expense. If you have permanent staff that you need to pay the EPF to, you can record using this account. |
SOCSO - Employer's Contribution | Employer portion for staff SOCSO is considered company expense. If you have permanent staff that you need to pay the SOCSO to, you can record using this account. |
EIS - Employer's Contribution | Employer portion for staff EIS is considered company expense. If you have permanent staff that you need to pay the EIS to, you can record using this account. |
Salaries & Wages | If you have a staff/employee that you need to pay the salary every month, you can use this account and record it under the Money Out module. |
Rounding Loss | If you recorded the sale transaction with a decimal point example RM25.64 and you wanted to round it to RM25.60, you can turn on the rounding adjustment toggle in the summary table. The rounding figure will automatically be posted to this account. |
Exchange Loss | For multi currency. The system will auto pass a journal if there are different between your transaction exchange rate and payment exchange rate. |
General Expense | General expenses are the costs a business incurs as part of its daily operations. You can use this account when you record Insurance, Office supplies, audit fees, subscription, etc. |
Interest Paid | When you need to pay the interest to a bank or any organisation, you can record using this account. Normally Interest paid occurs when you make a bank loan. |
Bank Charges | When recording a payment or receiving a payment with payment gateway, the bank charges amount will automatically be posted to this account. |
Advertisment & Promotion | If you have any marketing cost for advertisement & promotion, you can record using this account. You can record the transaction using the Money Out module. |
Water & Electricity | If you received any water bill, electricity bill, or any utilities for your company or even personal, you can record it using this account. |
Telephone & Internet | You can record your expense using this account if you reload credit for your prepaid, pay the monthly phone bill, or internet subscription. |
Legal Fees | Legal Fees are what you pay your lawyer to carry out the work for you. Example when you take the lawyer service to buying a house or any court case related. |
Accounting & Other Professional Fees | Deduct the fees you incurred for external professional advice or services, including consulting fees. You can deduct accounting and legal fees you incur to get advice and help with keeping your records. |
Rent Expense | When you want to pay any rent to your landlord or pay rental machinery, you can keep track of all your rent expenses using this account. |
Office Expense | This covers most other business expenses that are necessary to function and are often intangible. For example - software subscriptions, accounting software subscriptions, postage, cleaning services, etc. |
Printing & Stationery | Printing & stationery expenses include the cost of stationery items which are used daily in offices and the printed material for correspondence purposes. |
Travel Expense | Costs associated with traveling for the purpose of conducting business-related activities. Reasonable travel expenses can generally be deducted by the business when employees incur costs while traveling away from home specifically for business purposes. |
Daily Commute Expense | Commuting expenses is a transportation cost from house to workplace that happens every day. Such as car expenses, biking expenses, and public transportation costs and occur everyday. |