How to create Chart of Account? How to add /Edit/Delete/Inactive an account in Quick Books? Chart of account is pre-requisite for in any accounting solution at the time of implementation. Every ERP & small Accounting applications have different ways and account types to add chart of account. The most important thing is to have unique and flexible numeric codes for each type of account. These account codes should be created with such a technique that you can later add specific type of account in hierarchy. Normally chart of account is prepared in four levels to substantiate hierarchy of account types/FS elements. e.g., Assets, Liability, Equity, Income, Expense. Drawings are accounted for in Equity type and Expenses are further split into Cost of Sales & Expenses (Admin, Selling, Financial). Coding custom being mostly followed is under given but you may define your own suitable and logical coding for each type; FS Elements Denomination Assets
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