The Chart Of Accounts

What You Need

Helpful Information

 There are eight different account types in M.Y.O.B. These are listed below.

Account Type Prefix Description

Asset

1

Things you own (cash, cheque account, inventory, buildings) and money other people owe to you.

Liability

2

What you owe (loans, mortgages, accounts payable) and money held by you but owed to other people (eg sales tax, payroll tax, customer deposits)

Equity

3

Your and other people's investment in the company

Income

4

Money earned by your everyday business (eg sales)

Cost of Sales

5

Costs associated with producing a product (eg raw materials, manufacturing labour)

Expense

6

Costs of running your business (for example salary and wages, rent, marketing, electricity)

Other Income

8

Money earned that is not included in your everyday income (for example, extraordinary sales, interest income)

Other Expense

9

Costs that are not included in the day to day costs of running your business (for example, interest expense, income tax, extraordinary expenses

Account Numbers

M.Y.O.B. gives each account type a different prefix to its account number. These prefixes are set by M.Y.O.B. and can not be changed. They are shown in the table above.

After the preset prefix, each account has a four digit number that uniquely identifies that account. The accounts are always kept in account number order.

Account Levels

Accounts are divided into four levels.

Level 1 is the highest and is the account type (asset, equity etc). You cannot change these or make new Level 1 accounts. They are set by M.Y.O.B.

Level 2 accounts are shown as the next space in by M.Y.O.B. They can be section headers or detail accounts.

Level 3 accounts are shown as the next space in by M.Y.O.B. They can be section headers or detail accounts.

Level 4 accounts are shown as the next space in by M.Y.O.B. They can only be detail accounts.

Detail accounts add to a section header in the level above them. For example, level 4 detail accounts add to a level 3 section header. Transactions can only be assigned to detail accounts.

Section headers give subtotals for the detailed accounts on the level below them. They must add to a section header on the next highest level. For example, a level 3 section header must add to a level 2 section header, which adds to a level 1 account.

It is a good idea to use the account numbers to reflect the level of an account.

For example: The level 1 asset account is 1-0000 Assets .

Level 2 asset accounts may be 1-1000 Current Assets, 1-2000 Non-Current Assets. The level 3 asset accounts would then be 1-1100 Cheque Account, 1-1200 Cash, 1-2100 Furniture etc.

The level 4 accounts would give more detail on these accounts. 1-2100 Furniture might have the following accounts summing to it: 1-2110 Tables, 1-2120 Chairs, 1-2130 Computers etc.

 

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