Chart of accounts (Required)
The chart of accounts is a list of account numbers and descriptions that correlate to an account type: asset, liability, equity, revenue, or expense. These accounts will be utilized throughout the accounting system when posting transactions and defining the proper reporting category.
To setup your chart of accounts simply click on settings from the main navigation, then business settings, then chart of accounts.
To make this process quick, Crunched has provided a template that includes nearly 100 account titles. Simply click, Set me up!, and we will import your chart of accounts. You can always edit account descriptions, add new accounts, or delete unused accounts later.
If you have an existing chart of accounts, simply import using our chart of accounts import template. You may download the import template, here.
To create accounts simply click in the “Add New Account” section. Enter an account number, account description, select the account type, and lastly the reporting category.
For more information on how to create new accounts and the proper chart of accounts format, be sure to checkout the numerous articles in our help center.
Account assignments are required when processing invoices or payables. The accounting system needs to know which accounts to post transactions too. This takes place in the accounts assignment section.
To setup your account assignments simply click on settings from the main navigation, then business settings, then account assignments.
If you import using the Crunched template, the account assignments are already pre populated. As you can see in the image below, we have assigned account numbers and account descriptions to all required accounts receivable and accounts payable accounts. While these are not required, if you plan on using the invoicing or payables functions, these items need to be completed.
For more information on account assignments for accounts receivable and accounts payable functions, be sure to checkout the numerous articles in our help center.
Closing entries (Income Statement Required)
Closing entries are required when moving your books from year to year. Depending on the type of business entity (sole proprietor, partnership, corporation) you should consult with your accountant to be sure this step is properly completed.
To setup your closing entries simply click on settings from the main navigation, then business settings, then closing entries.
In this section you need to select the equity account to close your income statement accounts. This section requires a total of 100% allocation of income statement items.
The bottom section allows for you to close out balance sheet accounts such as draw or contribution accounts to equity. This section is not based on a percentage, it is simply account to account.
When you have applied your income statement closing entry (required) and your balance sheet closing entry, click save.
For more information on closing entries, be sure to checkout the numerous articles in our help center.
Sales tax setup
To stay compliant with state, county, or city sales tax regulation, it is important to be sure you are charging and collecting the appropriate sales tax rates. If you are unsure if your State's regulation it is recommended you speak with an accounting professional or a CPA.
To setup your sales tax rates simply click on settings from the main navigation, then business settings, then sales tax setup.
To add a new sales tax rate, click in the add new sales tax rate section. First enter a rate ID, the rate percentage, a description, and the liabilities distribution account.
When your rate is complete, simply click save sales tax. When you go ahead and create sales items you can select whether the items are are sales tax applicable. Next step would be to setup your customers. When setting up your vendors you will note their applicable sales tax rate ID.
For more information on setting up sales tax rates and apply sales tax to invoices be sure to checkout the numerous articles in our help center.