Chart of Accounts Overview

Accounting & Finance · 5 min read

The Chart of Accounts (CoA) is the backbone of your accounting system. It defines every account your business uses to record transactions — from cash and inventory to revenue and expenses.

💡 Evrykit ships with a default CoA suitable for most businesses. You can customise it, but avoid deleting system accounts that are linked to automatic postings.

Account Types

Evrykit uses the standard double-entry account classification:

Type	Normal Balance	Examples
Asset	Debit	Cash, Accounts Receivable, Inventory, Fixed Assets
Liability	Credit	Accounts Payable, VAT Payable, Loans
Equity	Credit	Owner's Equity, Retained Earnings
Revenue	Credit	Sales Revenue, Service Income
Expense	Debit	Cost of Goods Sold, Salaries, Rent

Account Numbering

Accounts are typically numbered using a standard scheme:

1xxxx — Assets
2xxxx — Liabilities
3xxxx — Equity
4xxxx — Revenue
5xxxx — Expenses

This makes it easy to group and report on related accounts.

Adding a New Account

1. Go to Accounting → Chart of Accounts and click New Account.

2. Enter a unique account code and name.

3. Select the account type (Asset, Liability, Equity, Revenue, Expense).

4. Optionally set a parent account to create a hierarchy.

5. Save. The account is immediately available for journal entries and postings.

System Accounts

Certain accounts are used automatically by Evrykit for journal postings:

Accounts Receivable — Debited on invoice posting; credited on customer payment.
Accounts Payable — Credited on supplier invoice; debited on supplier payment.
Inventory — Debited on stock receipt; credited on COGS posting.
VAT Payable / Receivable — Posted on taxable transactions.

⚠️ Do not deactivate or delete system accounts. They are linked in the Inventory Account Mapping and will cause posting errors if removed.

Viewing the Account Ledger

Click View Ledger on any account to see a chronological list of all debits and credits. Use the date range filter to narrow down to a specific period.