Intermediate
How to customize chart of accounts on FreshBooks
Quick Answer
Customize your FreshBooks chart of accounts by navigating to Accounting > Chart of Accounts, then add, edit, or organize accounts to match your business needs. You can create custom account types, set account codes, and arrange accounts in logical groupings for better financial reporting.
Prerequisites
- Active FreshBooks account with admin privileges
- Basic understanding of accounting principles
- Knowledge of your business's financial structure
- Access to FreshBooks web application
1
Access the Chart of Accounts
Log into your FreshBooks account and click on Accounting in the left sidebar menu. Select Chart of Accounts from the dropdown options. This will display your current list of accounts organized by account types (Assets, Liabilities, Equity, Income, and Expenses).
Tip
Bookmark this page if you frequently manage accounts, as it's one of the most commonly used accounting features.
2
Add a New Account
Click the + Add Account button in the top-right corner. Select the appropriate Account Type from the dropdown (Asset, Liability, Equity, Income, or Expense). Choose a specific Detail Type that best describes your account purpose. Enter a descriptive Account Name and optionally add an Account Code for easier identification.
Tip
Use consistent naming conventions and numbering systems to keep your chart of accounts organized and professional.
3
Configure Account Settings
In the account creation form, set the Opening Balance if applicable (typically for asset and liability accounts). Choose whether to Track by Location if you have multiple business locations. Select the appropriate Tax Code if the account affects tax reporting. Click Save Account to create the new account.
Tip
Leave opening balances at zero for new accounts unless you're migrating from another system with existing balances.
4
Edit Existing Accounts
Locate the account you want to modify in the chart of accounts list. Click the pencil icon or account name to open the edit dialog. Update the account name, description, account code, or other settings as needed. Be cautious when changing account types as this can affect historical reporting. Click Save Changes to apply modifications.
Tip
Always review transaction history before making major changes to account types or structures.
5
Organize Account Structure
Use the drag and drop functionality to reorder accounts within their types. Create logical groupings by naming related accounts with similar prefixes. Utilize account codes (like 1000, 1100, 1200) to maintain numerical order. Consider creating parent-child relationships for detailed tracking while maintaining summary-level reporting.
Tip
Follow standard accounting numbering conventions: 1000s for Assets, 2000s for Liabilities, 3000s for Equity, 4000s for Income, 5000s for Expenses.
6
Set Up Sub-Accounts
For detailed tracking, create sub-accounts under main categories. Click + Add Account and select the parent account from the Sub-account of dropdown. This creates a hierarchical structure that rolls up to the parent account in reports. Name sub-accounts clearly to indicate their relationship to the parent account.
Tip
Use sub-accounts sparingly to avoid over-complicating your chart of accounts while still capturing necessary detail.
7
Review and Test Your Setup
Navigate to Reports > Balance Sheet and Profit & Loss to verify your accounts appear correctly. Create a test transaction using your new accounts to ensure they function properly. Check that account groupings and order make sense for your business reporting needs. Make any final adjustments to account names or structure.
Tip
Run reports regularly after customization to ensure your chart of accounts meets your business intelligence needs.
Troubleshooting
Cannot delete an account that has been used in transactions
You cannot delete accounts with transaction history. Instead, make the account inactive by editing it and unchecking the Active checkbox. This hides it from new transactions while preserving historical data.
Account codes are not displaying in reports
Go to the specific report settings and ensure Show Account Codes is enabled in the report customization options. You can also verify this setting in Settings > Account Settings > Accounting.
New accounts not appearing in transaction dropdown menus
Ensure the account is marked as Active in the account settings. Also verify you've selected the correct account type, as only appropriate account types appear in specific transaction contexts (e.g., expense accounts in expense transactions).
Chart of accounts appears disorganized after customization
Use the Sort options at the top of the Chart of Accounts page to organize by account code, name, or type. Implement a consistent numbering system and consider renaming accounts with prefixes to group related items together.
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