Most businesses will not need to adjust the categories for transactions (aka chart of accounts). You will need to, though, if you want to create a new expense account.
Let's say that you spend a lot of money on paper each year and you want to track that separately from other office expenses.
- Click the Accounting tab.
- Click to select the expense item in the list.
- Then click the New Account button.
- In the Account Editor window, enter a name for the expense account (in this example, we'll call it "Paper"). In the Opening Balance field, enter 0.00. Then click Save.
You've successfully created a new expense account.
Knowing what expense categories (aka accounts) you need for your business can be tricky. There are two reason to group expenses:
1. To understand your business. For example, if you spend a lot of money every year on paper you might want to track paper separately from other office expenses.
2. To have the details you need for filing your taxes. If paper expenses are treated differently from other types of expenses at tax time you will want to track it separately. For most businesses the default set of expense categories should be fine, but you may want to use a CPA to help you understand the expense accounts that apply to your business. If you get that right throughout the year, filing your taxes is much much easier (and cheaper).