GL account types [in-depth guide] – Workamajig

Overview

When adding a new GL account, Workamajig requires that an 'account type' be designated from a pre-defined list. The 'account type' is used for financial reporting purposes. There is no ability to edit the account type list. If you have a summary-detail relationship with accounts, the summary-level account type will be set on all detail accounts. Mixing account types in this relationship is not allowed.

The default list of GL accounts setup in Workamajig uses a GAAP-based numbering of the accounts. The exception may be the credit card account type. Some will place this in the "1" group as it may be easier to see as a "bank"-style account, but it is still a defined liability account.

The pre-defined list of accounts are:

Below will define the nature of the account and

Asset account types

Bank: required

At least one account must be designated. The bank will be used to define where default payments & receipts are booked towards.

NOTE: GL company considerations: When setting up an account with account type: 'bank', 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. However, you can still restrict specific GL accounts to only be to selected GL companies.

Accounts receivable: required

At least one account must be designated. Though more than one can be created, Workamajig highly recommends that ONLY one be created. This account type is used for client invoicing and AR aging reports.

Current asset

Used to track short-term transactions that are expected to be converted into cash within one year.

Fixed asset

Used to track long-term transactions, such as, equipment & buildings.

Other asset

Used to track miscellaneous assets that cannot be classified as current assets, fixed assets, or intangible assets.

Liability & capital account types

Accounts payable: required

At least one account must be designated. Though more than one can be created, Workamajig highly recommends that ONLY one be created. This account type is used for vendor invoicing and AP aging reports.

Current liability

Used to track the agency's short-term financial obligations that are due within one year or within a normal operating cycle.

Long term liability

Used to track financial obligations of the agency that are due more than one year in the future.

Credit card: required for credit card integration

At least one account must be designated if using credit card integration. Workamajig recommends you set up a summary account for the main issuing bank and create a detail account for each card that has been issued to your agency.

Equity account types

Equity - does not close

Used to track equity transactions. The balances contained in this account will remain unchanged at the beginning of the fiscal year.

Equity - closes

Used to track equity transactions. 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.

NOTES:

There is no need to create a journal entry to close the fiscal year (if you want a JE, then use the account type: '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.

Retained earnings: required

At least one account must be designated. Though more than one account can be created, Workamajig recommends that only one be used. This account is used for tracking the retained earnings at the beginning of each Fiscal Year.

Income account types

Income

Used to track client invoicing. Typically, the defined accounts will also be associated to service items & expense items to better track billed transactions into the appropriate GL account. These accounts will be used for AGI calculation

Other income

Used to track income that does not come from the agency's main business

Expense account types

Cost of goods sold

Used to track client/project-connected vendor invoicing. Typically, the defined accounts will be associated to expense items to track client/project transactions better. These accounts will be used for AGI calculation.

Expense

Used to track agency vendor invoicing. Typically, the defined accounts will be associated with agency-related expense items to track agency expenses better.

Other expense

Used to track expense that does not relate to the agency's main business

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