Accounts are used to track how money is earned, allocated, and spent. Since a company uses many accounts to run their business, accounts are organized into groups. Each group is a collection of accounts that have the same purpose. The main groups are:
- Assets. Any item of value owned by the company. This can include money that others owe you, and money in your bank accounts.
- Revenues. Money earned by the company.
- Liabilities. Any amount that you owe to another business, bank, or person.
- Expenses. Costs associated with running a business.
- Equity. The net worth of a business to its owner.
When a company file is generated, Sage 50 Accounting creates most of the accounts you need. You can rename accounts in Sage 50 First Step Accounting. You can also generate a trial balance report to display and print a list of all your company accounts.
If you are not using an account, but want to keep its
information in your company file, you can make it inactive. You can add or remove bank accounts
Opening Balances
When you create a new company in Sage 50 Accounting, the program can be updated with your company's previous historical financial information by entering an opening balance in your banking and business operating accounts. In Sage 50 Accounting, you can only enter an opening balance during the first year of business.
Note: In the Accounts Payable and Accounts Receivable business operating accounts, the opening balance fields are not available.