Once the chart of accounts structure is identified, classes are generally followed to develop the specific account codes, as shown in the following sample chart of accounts below. The numbering of the accounts should incorporate some logic in order to make it easier for non-accountants to code transactions. For example, the accounts would be grouped by category (i.e.; overhead) then listed in group of Ledger.

  • 1000 – Assets ( are generally numbered in order of liquidity of assets, i.e. 1100 as Cash, 1200 as Accounts Receivable, 1300 Inventory and so on, National Acount receivable, deductible )
  • 2000 – Liabilities : A/P, bank loan, mortgage payable, accrued liabilities
    • Ex Deposit : until transaction completed (set on the sales GL)
  • 3000 – Owners/Shareholders Equities
  • 4000 – Revenues - Sales  ( including non refundable deposit )
  • 5000 – Cost of Goods Sold & Services
  • 6000 – Selling, and General & Administrative Expenses
    • Ex Tools for the shop (purchases GL), maintenance on loaner
 
If you have anything that you do not know where to put there is an account called “Ask my accountant”  This is a good account to use as it stands out.

 

Why is GEM-CAR default structure with 3 digit ?

The support team is equip with a special tool to import your favorite GL chart and then reassigned all 3 digit code into the 4 digit code structure. This way they can confirmed that every GL was reassigned from the old chart. 

NOTE: Please take an appointment with a member of the support team to perform these task. 

  • 100 – Assets ( are generally numbered in order of liquidity of assets, i.e. 1100 as Cash, 1200 as Accounts Receivable, 1300 Inventory and so on.
  • 200 – Liabilities : A/P, bank loan, mortgage payable, accrued liabilities
    • Ex Deposit :non taxable until transaction completed (then set on the sales GL)
  • 300 – Revenues - Sales
  • 400 – Cost of Goods Sold & Services
  • 500 – Selling, and General & Administrative Expense
  •           Ex Tools for the shop (purchases GL) 
  • 600 – Financial fees
  • 700 – Depreciation
  • 800 – Income taxes

 

Important note when using department 

When Changing for GL chart to 4 digit,

  • Go to Inventory/Maintenance of Job type
  • Change the "000" on all job type to "004"
  • Save,
Else some accounting report will show invalid GL code: missing the forth digit !