Ledger Account Setup Menu Bar

Save

Saves any changes made.

New Main Account

New GL Main Account

Creates a new GL main account.

To add a sub-account:

1.Select the main account by clicking its row.

2.Right-click on the row selector and choose Add Sub-Account.

Account Types

Account Types

•Opens a list of all available account types.

•You can specify the print order on the Trial Balance by dragging and dropping the account types.

Sales & Cost of Sales Link

Sales & Cost of Sales Link

•Links a Sales account to a related Cost of Sales account.

•This affects how your Income Statement is displayed.

Help

Opens this manual.

General Ledger Account Setup -- Extra Menu

Chart of Accounts

Print or export the Chart of Accounts to Excel.

Import General Ledger Accounts

To import your general ledger accounts: Go to the Extra tab then select Import to import GL accounts.

Delete Unused

Delete Unused GL Accounts

Removes unused GL accounts:

1.Select the account by clicking its row.

2.Right-click and choose Delete This Account.

Note: Greyed-out accounts with transaction history cannot be deleted.

To consolidate accounts: Use: Corrections GL Account Merge to merge accounts, then delete the merged account if needed.

Set All To Not Applicable

Sets all GL VAT types to Not Applicable.

General Ledger Account Setup -- Columns Explained

Description

The account name.

Account type

Choose from a drop-down list.

Default VAT

Default VAT

•Select the applicable VAT type.

•VAT types can be created or changed in the TAX Setup module.

•Smart-IT also allows default VAT settings for inventory and supplier accounts.

Allow Post

Allow Post

•Controls whether postings can be made to the account.

•Usually disabled for control accounts (e.g., Debtors, Creditors).

•Important: If you use the Budget module, do not post to main accounts with sub-accounts. The budget module use the main account to sum the sub-account values.

Reconcilable

Reconcilable

Enable for accounts requiring reconciliation against bank statements (e.g., bank accounts, loan accounts, credit cards). Only reconcilable accounts appear in the Bank Reconciliation form and Cash Journals.

Additional Code

Used for integration with Caseware or Draftworxs.

oWhen exporting the Trail Balance to Excel, the Additional Code (entered in the Account Setup) is also exported.

oWhen importing the data into Caseware or Draftworx, these codes are used for mapping the accounts.

Important: Obtain the trial balance with linked account numbers from your accountant after finalizing the Annual Financial Statements (AFS) before updating in Smart-IT.

Account Types

Code

A List of Account Types or Accounting Classes in Smart-It

Owner's Equity

Capital is comprised of net income plus the money that the owner originally invested.

 Capital (Equity)

Cap

Owner's equity (which includes capital investments and drawings), Opening balance equity, and retained earnings.

 Capital Retained Earnings

CapR

Retained Earnings.

 Additional paid-in capital - common

CapAp

Money received from investors for common stock.

 Additional paid-in capital - preferred

CapApp

Money received from investors for preferred stock.

 Preferred Stock

CapPS

Stock whose holders are guaranteed priority in the payment of dividends

Assets

Assets represent what an individual or entity owns

Assets CTG

AssetCGT

Assets with a capital gains tax implication

 Current Assets

AssetCA

Employee Cash Advances, Prepaid Expenses,  Allowance for bad debts, Other

 Accounts receivable

AssetAccRec

Accounts Receivable (Debtors). Must be used separately to correctly calculate the financial ratios.

 Non-Current Assets (Fixed Assets)

AssetNC

Depreciable assets your company owns that aren't likely to be converted into cash within a year, such as Financial Assets, Property, Plant & Equipment, Furniture etc.

 Inventory (Stock)

AssetI

Inventory or Stock

 Cash Assets

AssetCA

To handle accounts payable (supplier payments) correctly as well as financial ratios

 Intangible Assets

AssetInt

Long term: Business properties, such as brands, franchises, trademarks and patents

 Bank

Bank

Liabilities

Liabilities represent what is owed

 Long Term Liabilities

LiabL

Loans and obligations with a maturity of longer than one year, usually accompanied by interest payments.

 Accounts Payable

LiabAccPay

Trade and Accounts Payable (Creditors). Must be used separately to correctly calculate the financial ratios.

 Current Liabilities

LiabC

Liabilities that are scheduled to be paid within one year, such as sales,sales tax, payroll taxes, accrued or deferred salaries, and short-term loans.

 Liability Leases

LiabCle

Leases Payable (current)

 Liability - Dividends Payable

LiabCdi

Distributions of earnings to shareholders.

 Liability - Taxes

LiabCta

Accrued income, property, and sales taxes payable to city, state, and federal governments.

 Liability - Notes Payable

LiabCN

Money that your business owes that will be paid within a year, including bank notes, mortgages, and vehicle payments.

Income

Income is money that is earned

 Income Gain / Loss on Asset Disposal

IncAGL

The gain or loss on disposal of fixed assets

 Income Dividends

IncD

 Income Dividends Foreign

IncDF

 Income Non Operating

IncNO

Interest Income

 Income Foreign

IncF

Foreign Income

 Income Not Taxable

IncNT

 Income Other Operating

IncOP

Rent, Prov. bad debt, Profit On Disposable Assets

 Income Sales

IncOpSales

Income from trade. The main source of money coming into your company.

Expenses

Expense is money that is spent

 Cost of Sales

COS

The cost of goods and materials held in inventory and then sold.

 Direct Material Cost

CosDir

Direct materials cost the cost of direct materials which can be easily identified with the unit of production.

 Cost of Sales - Direct Labour costs

CosLab

 Expenses Depreciation

ExpeDep

 Expenses Income Tax

ExpeIT

 Expenses Non-Operating

ExpeNOP

Example: Interest

 Expenses Operating

ExpeOP

An expense incurred in carrying out an organization's day-to-day activities, but not directly associated with production.

 Expenses Other

ExpeOT