Income & Expenditure Accounts

In any business, financial transactions are crucial and need to be accurately categorized for accounting purposes. This process is typically accomplished through the creation of Income & Expenditure Accounts, often referred to as the Chart of Accounts in accounting systems. This document will guide you through the steps necessary to set up and manage Income & Expenditure Accounts in HirePOS.

HirePOS comes pre-loaded with several default Income & Expenditure Accounts to streamline your setup process. However, it is recommended to review these accounts with your accountant and make any necessary adjustments to align with your business needs.

Income & Expenditure Accounts in HirePOS fall into specific categories, including:

• Operational Expense

• Capital Expense

• Personal/Drawings

• Sales Income

• Other Income

Additionally, there are two special categories, namely Opening Balance and Account Transfer, which are used for internal transfers between business accounts and are not considered actual income or expenses.

Each Income & Expenditure Account can have a default tax code associated with it. This feature allows for streamlined tax reporting and compliance.

To create new Income & Expenditure Accounts in HirePOS, follow these steps:

1. Navigate to Setup > Income & Expenditure Accounts to access the list of existing accounts.

2. Click on 'New Account' to open the account creation window.

3. Enter the Account Name and select a default tax code from the Tax Default dropdown list. This tax code can be overridden when entering new expenses or payments.

4. Choose the appropriate category for the account - Operational Expense, Capital Expense, Personal/Drawings, Other Income, Opening Balance, or Account Transfer.

5. Click 'Save Changes' to finalize the setup.

By following these steps, you can efficiently manage your Income & Expenditure Accounts in HirePOS, ensuring accurate financial tracking and reporting for your business.