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Edited Introduction to Chart of Accounts
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+RepairDesk aims to give you one software powered to cater all your needs. A repair shop is not just about inventory, services, employees and suppliers. One has to manage shop’s accounts efficiently as well to see the growth, realize roadblocks on the path of success, and predict strategies to increase profit. RepairDesk has introduced a new module that is capable of handling the finances of your repair shop in an effective manner and project the learnings for future decisions.
+
+RepairDesk’s Chart of Accounts
+------------------------------
+
+Before we begin with the setup of RepairDesk’s chart of accounts, let’s get into some of the important definitions and rules. Every organization defines some accounts to keep the data of their finances. All of these accounts when combined, a general ledger is formed. A chart of accounts or COA is a listing of all the accounts present in the company’s general ledger. These accounts are usually broken down into subcategories for easier management.
+
+COA can be sorted with multiple filters, however, the most commonly used is the \`account number\`. Using COA makes it easier for the businesses to organize their finances and have a clearer insight into the financial health of the company. Here are some terms you must be aware of:
+
+**Equity:** Value to be returned to the shareholders of the company.
+
+**Liability:** Amount that a company owes, usually in terms of money.
+
+**Revenue:** It represents the total amount of income made by the company either through its services, good sold or both combined.
+
+**Cost of Sales (COS):** It represents the sum of all expenses used in creating a product or service, that has been sold.
+
+**Expense:** Money and resources spent while generating revenues, i.e. utilities, wages and rent.
+
+**Accrual Accounting:** It is a method of accounting in which the revenue and expenses are recorded at the time of transaction instead when the payment is received or sent.
+
+Credit vs Debit
+---------------
+
+Debit includes all record of the money that is supposed to flow out into a company’s account from another account. However, credit includes all the record of money that flows out of a company’s account to another account. Both of these terms are used widely in the accounts and finance. You would see them being used in our Chart of Accounts as well.
+
+### Double Entries
+
+The finance and accounting industry operate on a simple concept – every monetary transaction has an equal but opposite effect in two or multiple accounts. This concept is applied on every single penny flowing in or out of the company’s account. This activity is performed to satisfy the given equation of accounting:
+
+**Assets= Equity + Liabilities**
+
+This activity of double entry ensures that credits are balanced by debits in the company’s general ledger.
+
+Types of Chart of Accounts
+--------------------------
+
+There are primarily two types of accounts that are dealt in chart of accounts. One is known as Balance Sheet Type that deals in financial statement related to balance while other is known as Profit and Loss (P&L) Type that deals in profit and loss statements. These types have further sub-types. P&L Type covers income, COGs (Cost of Goods Sold), Expenses, Other Income and Other Expenses. Similarly, Balance Sheet Type covers Assets, Liabilities, Equity, Cash, Bank, Current Assets and Liabilities.
+
+What Does RepairDesk Offers You?
+--------------------------------
+
+RepairDesk offers you to map all your accounting and finance related necessary details on Chart of Accounts. Sub-types for the accounts are already made for the ease of the repair shop owners. However, they can make new account sub-types and edit the manually-made sub-types if they want. The manually-made sub-types can’t be deleted once they are linked with a transaction. Here is how we have mapped your repair shop’s cash inflow and outflow on the account sub-types at hand:
+
+### Expenses → (Main Account)
+
+(Accounts -> Hit by Journal entry)
+
+Sub-Headers (debit + and credit -) → has nature debit
+
+ - Payroll (Employee Expenses)
+
+ - General & Admin Expenses
+
+ - Sales & Marketing Expenses
+
+ - Dues & Subscription
+
+ - Finance Cost
+
+ - Income Tax Expenses
+
+ - Legal & Professional Fees
+
+ - Meals & Entertainment
+
+ - Rent & lease Expenses
+
+ - Office Supplies
+
+ - Bad Debts
+
+ - Repair & Maintenance
+
+ - Depreciation
+
+ - Commission → (Hit by commission and journal entry)
+
+ - Refund → (Hit by automatic commission refund)
+
+ - Non-Operating Expenses
+
+
+
+### Revenue → (Main Account)
+
+(Sub Accounts -> Hit by Invoices and Journal Entry)
+
+Sub-Headers (debit -(in case of refund) and credit +(in case of invoice))
+
+\- Products
+
+\- Repair Parts
+
+\- Service Items
+
+\- Special Ordered Items
+
+\- Buy Backs
+
+\- Refunds → (Automatic hitting)
+
+
+
+### Cost of Sales → (Main Account)
+
+(Sub accounts) -> (Hit by cost of sales (Items cost price)
+
+SubHeaders (debit + (in case of invoice) and credit - (in case of refund))
+
+**Sub-Headers**
+
+ - Products
+
+ - Repair Parts
+
+ - Special Ordered Items
+
+ - Buy Backs
+
+ - Refunds (Automatic hitting)
+
+
+
+### Assets → (Main Account)
+
+Headers (debit + and credit -)
+
+\- Current Assets
+
+**Sub-headers**
+
+ - Account Receivable → (Hit by Sales Invoices on accrual base → only in case of unpaid and partial paid)
+
+ - Cash and Bank → (Hit by Journal Entry)
+
+ - Cash in Hands → (Hit by Journal Entry OR Cash Register)
+
+ - Integrated Payments → (RD Pay)
+
+ - Loans & advances → (Hit by Journal Entry)
+
+ - Inventory → (Tangible Assets)- Hit by PO/GRN
+
+ - Refunds → (Refund by automatic hitting)
+
+\- Fixed Assets (Non Current) → (Journal Entry)
+
+**Sub-Headers**
+
+ - Land & Building
+
+ - Machinery & Equipment
+
+ - IT Equipment
+
+ - Vehicles
+
+\- Long Term Investment
+
+ - Long Term Investment (Journal Entry)
+
+
+
+### Liabilities → (Main Account)
+
+Headers (debit - and credit +)
+
+\- Current Liabilities → (Hit by Journal Entries OR PO on Credit Base) → Unpaid or partial paid POs
+
+**Sub-Headers**
+
+ - Account Payable → (Hit by PO created by supplier)
+
+ - Taxes Payable (Hit by taxes in Invoices) → Cash Basis (Paid Only) → In case of paid, tax payable will be credited; In case of refund, tax payable will be debited
+
+ - Pre Received Income (Auto in case of Deposits)
+
+ - Accrued Expenses → (Journal entry)
+
+ - Short Term Loans → (Journal entry)
+
+\- Non Current Liabilities → (Hit by Journal Entries)
+
+**Sub-Headers**
+
+ - Long Term Debt
+
+
+
+### Equity → (Main Account)
+
+Sub-Headers (debit - and credit +)
+
+\- Share Capital → (Hit by Journal Entry)
+
+\- Additional Paid-In-Capital (Hit by Journal entry)
+
+\- Retained Earnings → (Hit by Profit & Loss) → Manual entry