You want to set up your system so it records the income and expenses specific to your business.

Creating the correct categories to classify your income and expenses is the first step. 

Accounting software has a chart of accounts. A chart of accounts is a document listing the financial accounts that you or your accountant set up for your business. This is used to categorise your business transactions.

Accounts are usually grouped by type, for example:

You can generally add, edit or delete accounts and subcategories to suit your business.

Here are some examples of subcategories that are often found under each account.

As you manage your record keeping, you assign records of all your business transactions to one of these accounts.