Purpose
The Chart of Accounts module serves multiple functions: it holds all ledger account data used for compilation of Financial Statements, both internally through TRUE Accounting and externally via QuickBooks and/or Sage Intacct Integration. It provides a setup section for the 'Default Chart of Accounts' options, allowing users to set predetermined ledger accounts for various source documents in TRUE (e.g., Invoices, Bills, Payments). It also stores 'Class' data used in both TRUE Accounting and QuickBooks.
Access Path: Gear Icon > Chart of Accounts
Module Components
The Chart of Accounts module consists of several key components
| Ledger Accounts Mode | A list of all ledger accounts available for selection and inclusion in financial statements. |
| Default Accounts Mode | A list of various ledger accounts that TRUE will automatically set upon creating a journal entry. |
| Class Mode | Additional identifying criteria users can deploy for financial reporting. |
| Groups Mode | Groups allow for the ability to link ledger accounts and total multiple accounts on a financial statement. |
Ledger Accounts Mode
The Ledger Accounts mode displays the company's Chart of Accounts
Search & Filter Options
| Quick Search | Use the search bar to search for ledger accounts by partial or full name, category, or number. |
| Active | Displays all active ledger accounts. |
| Inactive | Displays all inactive ledger accounts. |
| Show All | Shows both inactive and active ledger accounts. Will not show previously deleted ledger accounts. |
| CSV Template | Produces a blank .CSV file template for data import into TRUE. |
| Export Accounts | Allows users to export the Chart of Accounts into a .CSV file. |
| Import Records | Once the .CSV template has been correctly updated, selecting Import Records asks users to choose the template file and upload into TRUE. |
| + Icon | Click to add a new ledger account to TRUE. A card will pop open to allow the user to create an account. |
| Refresh Icon | Reloads the ledger account list. |
| Trash Can Icon | Inactivates a ledger account. This will not affect any prior accounting periods but will remove the account as an option for new entries. |
| Batch Action Bar | Selecting one or more ledger accounts (row checkboxes) reveals a batch action bar (with a package/box icon) with Archive and Reactivate buttons, letting you change the active status of multiple accounts at once. |
| Warning Indicator (⚠️) | A red warning triangle appears in the Subcategory and/or Ledger Number column position for a ledger account that is missing one of those values — a data-quality flag, not a separate action. |
Ledger Account Fields
The list view displays the columns Category, Subcategory, Identifier, Ledger Number, and Ledger Name. Selecting a ledger account (or the + icon) opens the edit card, where the corresponding fields are labeled Classification, Subclass, Identifier, Number, and Name, plus Contra To and Group.
| Classification (list column: Category) | Used for grouping and totaling on accounting reports. Shows the selected classification for the general ledger account. Examples include: Assets (resources owned by the organization), Liabilities (debts or claims), Equity (owner's financial share), Revenue (income received), Expenses (costs paid). |
| Subclass (list column: Subcategory) | Used for grouping and totaling on accounting reports. Each classification has its own specific subclasses. |
| Identifier | An additional level of labeling and grouping ledger accounts on accounting reports. Examples include payable, sales tax, use tax, other asset, cash, or receivable. |
| Number (list column: Ledger Number) | Account numbers must be a minimum of four and a maximum of ten numbers. Common ranges: Assets (1000's), Liabilities (2000's), Equity (3000's), Revenue (4000's), Costs of Goods Sold (5000's), Expenses (6000's and up). |
| Name (list column: Ledger Name) | Title of the ledger account. This is a customizable field based on the company's reporting preferences and active accounts. |
| Contra To | Links this account as a contra account to another ledger account (an account that offsets the balance of the account it is paired with). |
| Group | Assigns the ledger account to a ledger Group for linking and totaling multiple accounts on a financial statement (see the Groups mode). |
Default Accounts Mode
Configure default ledger accounts for automatic journal entry creation
Sales
| AR Account | Represents the account used to track money owed to the company by customers for goods or services provided on credit. |
| Retainage Receivable Account | Tracks the portion of contract payments withheld by customers until project completion or other conditions are met. |
| Revenue Account | Used to record income generated from the company's primary business activities. |
| Other Revenue Account | Records income from sources other than the company's primary business activities. |
| Deferred Revenue Account | Records payments received in advance for goods or services not yet delivered. |
| Sales Returns Account | Tracks the value of goods returned by customers and related adjustments. |
| Sales Tax Liability Account | Used to record sales tax collected from customers that must be remitted to tax authorities. |
Inventory
| Inventory Account | Used to record and track the value of goods held for sale or production. |
| Goods Received not Invoiced Account | Records inventory items received but not yet billed by the supplier. |
| Cost of Goods Sold Account | Tracks the direct costs associated with producing goods sold by the company. |
| Inventory Shrinkage Account | Used to account for inventory losses due to theft, damage, or errors. |
Over/Under Billing Adjustment
| Cost in Excess of Billing Account | This is referred to as 'underbilling', a situation where a subcontractor incurs costs for work that has yet to be billed to the client. |
| Billing in Excess of Cost Account | This is referred to as 'overbilling', a situation where a subcontractor bills more to the client than the costs they've incurred. |
Equity, Payments, Payroll & Purchasing
| Unclosed Net Income Account | Used to track the company's net income or loss for the current accounting period. |
| Cash Account | Represents the company's liquid assets, including currency and bank deposits. |
| Credit Card Fee Account | Ledger account when a Credit Card fee is included in a Receipt Transaction Journal Entry. |
| Payroll Expense Account | Used to record the total cost of employee compensation, including wages and salaries. |
| Payroll Liability Account | Tracks amounts owed to employees and tax authorities for payroll-related obligations. |
| AP Account | Represents money owed by the company to suppliers for goods or services purchased on credit. |
| Expense Account | Used to record costs incurred in the course of business operations. |
| Use Tax Liability Account | This is the applicable ledger account link to the Tax Rate that is included in a Bill or Invoice. |
| Purchase Returns Account | Used to record the value of goods returned to suppliers and related adjustments. |
| Vendor Rebate Account | Tracks rebates or discounts received from suppliers, often based on purchase volume. |
| Vendor Credit Account | Records credits issued by suppliers for returns, adjustments, or other reasons. |
| Customer Credit Account | Used to track credits owed to customers, which may be applied to future purchases or refunded. |
Classes Mode
Configure your class list — additional identifying criteria for financial reporting
The Classes tab lists all classes available for additional reporting criteria. Classes are used in both TRUE Accounting and QuickBooks.
| Name | The class name. This is the only column in the Classes list. |
| + Icon | Add a new class to the list. |
| Refresh Icon | Reloads the class list. |
| Trash Can Icon | Removes a class from the list. |
Groups Mode
Configure your ledger groups list — link and total multiple accounts on financial statements
The Groups tab lists ledger groups used to link ledger accounts and total multiple accounts on a financial statement. A ledger account is assigned to a group via the Group field on its edit card.
| Number | The group number (e.g., 10000 Cash, 12000 Receivables, 45000 Job Revenues). |
| Name | The group name. |
| + Icon | Add a new ledger group. |
| Refresh Icon | Reloads the groups list. |
| Trash Can Icon | Removes a group from the list. |
Additional Features
- Integration with QuickBooks and Sage Intacct
- Automatic journal entry creation based on default accounts
- Flexible categorization and subcategorization of accounts
- Unique identifiers for semantic account recognition
- Grouping functionality for consolidated financial reporting
FAQ
Default Accounts Setup
The Cash Account is the depository account used on all journal entries generated from a Receipt transaction. It is typically set to an Undeposited Funds account, and the user then creates Deposit Tickets to roll up all receipt transactions into a single deposit for bank reconciliation — the way a bank deposit ticket combines a handful of individual receipts into one total dollar amount. Alternatively, the Cash Account can be set directly to the ledger account linked to the bank account, which bypasses the need for Deposit Tickets.
Tip: Set the Cash Account to either Undeposited Funds or the linked bank ledger account. Leaving it blank forces the user to select a ledger account manually on every receipt.
The Credit Card Fee Account default only applies when a Receipt transaction is processed through one of TRUE's two supported payment processors, Stripe or Run Payments. TRUE detects that the receipt came from one of those processors and splits an additional line for the credit card fee into the resulting journal entry, posting it to this account.
The Vendor Credit Account records Vendor Credits. Most firms use this account to show a Vendor Credit as a negative figure on the AP Report, representing an amount the vendor owes that will typically be applied as a reduction against the payment on a future Bill. Alternatively, some firms instead create a dedicated Vendor Credit asset account so the credit shows as an asset on the Balance Sheet rather than as a negative liability — either setup is valid, it depends on how the firm wants the credit to appear on financial statements.
A single Equity account (commonly numbered in the 3000's) is a valid setup. Upon closing each month, TRUE closes net income/loss to the retained earnings account as configured. Some firms instead create a separate Net Income/Loss YTD account so the Balance Sheet alone shows where the firm stands financially without needing to also pull an Income Statement. This is not a required setup — it's a visual/reporting preference, not a functional requirement.
These two defaults are only used by an Extended Payroll Journal Entry. Most firms can disregard these accounts entirely — this setup applies only to the most complex payroll processes, typically larger firms running TRUE alongside a third-party Payroll Provider, and usually involves a customization effort.
The Deferred Revenue Account default is used during the Down Payment process in the Jobs module. When a Down Payment is received and no work has yet been performed, TRUE moves those dollars to unearned revenue. When the final invoice is created, TRUE applies the down payment against it (leaving only the balance due to the customer) and converts the dollars from unearned to earned revenue. This is not a typical requirement for most firms and is usually only deployed for larger firms. Firms that plan to take down payments routinely through the Jobs module should treat this as a workflow worth confirming with TRUE before relying on it.
The Inventory default accounts are only used if the Inventory package is enabled on the subscription. For firms whose work is primarily specialty-ordered or built to spec, adding the Inventory package usually isn't necessary. Firms that carry a small amount of general inventory (for example, caulk or shims) can typically manage that with a periodic manual count — commonly once a year — rather than enabling the full Inventory package.