Goldenseal Account Types

There are four basic types of accounts used in Goldenseal accounting software:

  • Jobs
  • Assets
  • Liabilities
  • Costs

NOTE-- Assets and liabilities are the two "classic" types of accounts used in accounting. Goldenseal also uses jobs and cost accounts, since it is very focused on Job Cost Accounting.

Job Accounts

Use Job Accounts for your customers, projects and other sources of income. Job accounts consume expenses, and generate income (either directly or indirectly).

  • Use Customer accounts for any people or businesses that pay you money for sales, rentals or projects.
  • Use Project accounts for specific work you do, that is big enough to deserve separate job cost tracking.
  • Use Overhead accounts for any expenses that can't be assigned to a customer or project.

NOTE-- Equipment, Investment and Real Estate accounts are asset accounts, but they can also be considered as jobs, when you enter expenses or income.

Asset Accounts

Asset accounts handle any tangible or intangible thing of value in your business. The value of each asset account will be included in the balance sheet as a positive item.

  • Use Cash accounts for petty cash.
  • Use Checking accounts for bank accounts that have sequential check numbers.
  • Use Equipment accounts for vehicles, computers, machinery, large tools, and other equipment.
  • Use Inventory accounts for items that you sell, or use in projects.
  • Use Investment accounts for any type of asset that doesn't fall into one of the other classes.
  • Use Real Estate accounts for buildings, land, and other real property.
  • Use Savings accounts for bank accounts that do not have sequential check numbers.

Equipment, Investment and Real Estate accounts can also be considered as job accounts, and Equipment accounts are also listed as cost accounts.

HINT-- Goldenseal automatically includes Accounts Receivable as an asset on the balance sheet-- you do NOT need to create an asset account to track it.

Liability Accounts

Liability accounts handle debts or other financial obligations. The value of each liability account will appear on your balance sheet on the 'minus' side.

  • Use Credit Card accounts for revolving credit cards that usually have a negative balance.
  • Use Loan accounts for installment loans and any other type of loan.

We also include two account classes here which are not really liabilities:

  • Escrow Accounts do not appear on either side of the balance sheet- they are for accounts that you manage, but do not own (or owe).
  • Owner Equity is listed as a liability since it appears on the 'minus' side of the balance sheet.  You can consider it as money that the business 'owes' to the owners for their original investment.

HINT-- Goldenseal automatically includes accounts payable, unpaid payroll taxes and unpaid sales tax as a liability on the balance sheet-- you do NOT need to create liability accounts to track them.

Cost Accounts

Just about any person or business to whom you pay money should be entered as a Cost account.

  • Use Employees for people that you hire. It can also apply to partners, owners or working family members.
  • Use Equipment for vehicles, computers and other equipment (also considered as an Asset account).
  • Use Material Suppliers for people or companies that sell you tangible items.
  • Use Subcontractors, for people or companies that provide you with services.
  • Use Other Costs for tax agencies, insurance, advertising, and anything else that doesn't fit elsewhere.

HINT-- In the Chart of Accounts window you can list Equipment accounts as assets, as cost accounts, or as both.

Utility Accounts

Utility Accounts are Bookkeeping accounts for abstract items like Accounts Payable. Goldenseal already includes these accounts, and you don't need to set up any of them, on your own.