Account Types

Account types help you sort and track transactions in order to determine your business’s balance. Done by listing or creating a chart of accounts, these account types let you organize and number each account to locate transaction information. Each account type has a rule to identify its debit and credit aspects. Account types include Real Accounts, Nominal Accounts, and Personal Accounts. Real Accounts include all assets of a firm, both tangible and intangible, related to assets or liabilities. Personal Accounts are related to individuals, firms, companies, or entities that involve customers, vendors, salary accounts of employees, drawings and capital accounts of owners. Nominal Accounts relate to expenses, losses, incomes, or gains that are either profit or loss which is then transferred to the capital account.