System setup: GL accounts [in-depth guide]
Guide contents: Navigation | Required account types | Adding & editing GL accounts | Additional considerations | GL account types | Resources
Menu > Admin > System setup > GL settings > GL accounts
The general ledger accounts, or chart of accounts, form the basis of your financial records in the system. By default, Workamajig has a chart of accounts already set up for you. These are based on industry standards as provided by Second Wind.
Different types of accounts assist in tracking different types of financial information. They also control how and where records will appear on financial statements. The type of account combined with the account number controls the order in which account items will appear on your reports.
The system runs dual accounting for accrual and cash basis in the corporate P&L report. However, you need to ensure you have a start-up balance for both accrual and cash separately if you plan to use the system that way. For more on this, please refer to the Go Live for accounting [guide].
Required account types
Workamajig requires one of each of the following account types:
- Bank account.
- Account receivable - Recommend that only 1 account of this type be created.
- Account payable - Recommend that only 1 account of this type be created.
- Retained earnings - Recommend that only 1 account of this type be created. NOTE: If you do not create this account, Workamajig will auto-create the account at year-end.
For more info on account types, please refer to our GL account types [in-depth guide].
Adding & editing GL accounts
Your chart of accounts can be adjusted in System setup via Admin/manager > System aetup > GL settings > GL accounts.
GL accounts are automatically sorted on this page by account number and rollup. Each GL account will require a few pieces of information.
- Account name: This can be any combination of alpha-numeric characters.
- Account number: This can be any combination of alpha-numeric characters. Special characters can be used here too. The account number must be unique.
- Account type (accrual): Sets the account type from a preset dropdown. For more info on account types, please refer to our GL account types [in-depth guide].
- Account type (cash): Set the account type from the preset dropdown. If the account type for cash is the same account type as accrual, select 'same as accrual'.
- Active: New accounts are set as active by default, but this option can be toggled to prevent posting to an account.
New accounts can be added via the 'insert row' option located at the bottom of the page. Workamajig will create an entry that requires the information above. After saving, the account will automatically be sorted into your CoA based on the account number.
Clicking on any line in the chart of accounts will reveal a few additional options when you click on the 3 dots icon.
If the account is independent of other accounts, there will be an option to. If moved in, Workamajig will create a roll-up account out of the account directly above. The will only appear if an account has been previously pushed in.
The icon is another way of adding new accounts to your CoA. The icon will create an account directly below the account that is highlighted.
Additional details or notes can be adjusted via the icon. Clicking the details icon will slide out a tab with the following options:
Account name, type, and number: These items can be adjusted by default directly in the chart of the accounts grid.
Description: Text field that will allow you to add additional details to this account.
Active: This is a toggle. Accounts are created as active by default. An inactive account cannot be posted too, but the posting detail remains in the system for reporting purposes.
No journal entries: Prevents journal entries from being made to this account.
NOTE: Accounts receivable, credit card, and bank account GL account types have some additional setup items via that should be considered when they are created.
Accounts receivable details
When a GL account is not a true accounts receivable account type, such as an allowance for doubtful account, the checkbox 'exclude on Today accounting', the AR account is not included in the AR out of balance calculation on Today - accounting
Credit card details
Credit cards should have both a GL account and a vendor record. Those two items can be connected via the 'vendor' field in the account details at a GL level. Users with the right to add or view charges for this card should be entered as 'Card Users'. Additionally, credit card charges can be set to automatically download from your credit card vendor to the credit card connector nightly by using the 'financial institution' option. There are a number of setup pieces to take into consideration when adding a new credit card. For more information on this setup, items see Credit cards setup [in-depth guide].
Bank account details
Bank account number: Sets the bank account number at the GL level.
Next check number: This allows you to set the next number on your check stock. Workamajig will track this automatically, counting from the number defined here each time a check has been printed from the system.
Default check format: Sets the check stock format. Options are Check-Stub-Stub, Stub-Check-Stub, and Stub-Stub-Check.
Only appears if you have multiple GL companies enabled.
Per bank accounts, if checked, this allows users with GL companies to use the same GL bank account for multiple companies with the ability to have each GL company with its own next check number.
Importing GL accounts
Some prefer to import the chart of accounts.
Keep in mind that this requires extensive setup and ensuring all defaults for GL tracking options, services, and expense items re-established.
NOTE: If you are importing account type: credit card, a vendor ID is required. So you must have the credit card vendor record in place in Workamajig before importing this account type.
Will appear as an option in the details area of GL accounts for agencies that work with multiple currencies. Additional information on multi-currency setups can be found here: Multi-Currency setup [in-depth guide].
GL account types
Workamajig has the following account types available to use.
Asset account types
NOTE: When setting up a bank account type, you can now enable 'multi-company payment' so that a single bank account type can be shared across multiple GL companies with its own separate starting check numbers. This way, all GL accounts in System setup are shared across all GL companies, so they don't have to be set up as another set of chart of accounts for each GL company.
Recommend only one account of this type to be created.
Liability & capital account types
Recommend only one account be created for this type
Long term liability
Used to set up and track credit card transactions.
Equity account types
Equity - does not close
The balances contained in this account will remain unchanged at the beginning of the fiscal year.
Equity - closes
The balances contained in this account will be zeroed out and added to the retained earning figure at the beginning of the fiscal year. This is done automatically and on the fly from reports that you run for this type of information.
- There is no need to create a journal entry to close the fiscal year (if you want a JE, then use the account type of Equity - Does not close).
- This is a calculated zeroing out of the balance.
- This is done when running the Balance Sheet on or after the first day of the fiscal year.
Income account types
Recommend only one account be created for this type.
Cost of goods sold
Typically used for purchase items & media items (broadcast, print).
Expense account types
GL account types [in-depth guide]