Hi there, Is there a way to start a new account type in the chart of accounts?

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  • Updated 9 months ago
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Is there a way to start a new account type in the chart of accounts? 
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Pia Smith

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Posted 1 year ago

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Kevin Russell, Accredited Partner

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Its accounting. You cant just make up account types. Theres assets liabilities and equity and minor variants of these. Theres expenses and income. No other account type makes sense.
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Pia Smith

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Thank you for your lesson in accounting.  We are a firm of chartered accountants who specialise in providing CFO services to ASX listed companies so we do have some understanding of accounting!!

Our question was specifically intended to address the need for both mineral and petroleum clients to have additional asset classes of (1) Exploration Assets (2) Development Assets and (3) Mining Assets!

Does anyone know if it is possible to add 3 additional "Account Types" please?
Kind regards
Leni Stanley
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Kevin Russell, Accredited Partner

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Why didnt you say so? No you cannot
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David Robertson

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Hi Pia

As mentioned you cannot change the account type but I understand how this categorisation of account types cannot produce reports that mix both balance sheet account types as well as expense account types - for example exploration reporting where P&L expenses are mixed with capitalised costs, or where maintenance costs can be for both capital assets as well as revenue earning assets and still have to be reported on for say total maintenance costs purposes.

My solution is to create a separate chart of accounts by using the descriptions field in the account master table. By exporting your data to excel and using a report writer you can create any report you like. This is ideal for clients who have the need for specialised reporting . As a Reckon Consulting Partner I have provided outsouced reporting services for resource companies on this basis for many years.

Contact me for more details at dr@afpconsulting.com.au

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Pia Smith

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That is extremely helpful, thank you so much.
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John Graetz

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Hi Pia.  One option that could be suitable, in order to segregate  these assets, would be to create these accounts as sub accounts under "Other Assets".  Otherwise, as Kevin points out, there is no other capacity currently available to do this.
John L G
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Lynda Griffiths

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I feel for Pia Smith, having a so called accounting package Reckon, and not able to set up specific categories in the balance sheet is annoying.  I'd like Intangible Assets as a "type" this is certainly not out of the ordinary scope of balance sheet heading.
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Kevin Russell, Accredited Partner

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Lynda Reckon hosted costs five hundred dollars a year. You can have exactly what you want if you are prepared to spend the money. Reckon is built to suit the VAST majority of the sme market. And it does it quite well