Adding a new account in the Chart of Accounts

The system manages your financial accounts and processes their transactions automatically, and you can add an unlimited number of main and sub accounts to suit your business. This guide explains how to add a new account, with a practical example of adding accounts for multiple partners to track each partner’s capital and distribute profits among them.

Main accounts and sub accounts

Type	Description	Example
Main Account	A group (folder) that contains other accounts. You can’t record entries on it directly; its balance is the total of the accounts under it.	Expenses, Partners.
Sub Account	The account that entries are actually recorded on.	Office Rent, Partner Ahmed – Current Account.

Steps to add a new account

1. Click Accounting in the main menu, then Chart of Accounts. The chart appears as a tree.
2. Open the main account you want to add under (optional; it is then selected automatically as the main account).
3. Click Add Account.
4. Enter the account details:
   • Account Type: Sub Account or Main Account.
   • Code: suggested automatically as the next code after the last one under the main account, and you can change it. Codes can’t be repeated (The account code must be unique).
   • Name: the account name.
   • Main Account: the account the new account is listed under. A sub account must have a main account.
   • Type: Debit or Credit according to the nature of the account. It is suggested automatically from the main account.
   • Permissions: appears when branches are set for accounts. Select at least one branch.
5. Click Save. A message confirms that the account has been saved.

Nature of the account	Type
Assets and expenses	Debit
Liabilities, equity and revenues	Credit

Accounts you don’t add from the chart of accounts

Accounts for clients, suppliers, treasuries and bank accounts, warehouses, assets and taxes aren’t added from the chart of accounts. They are created automatically when you add the record from its own app.

Add accounts for multiple partners

The system doesn’t have a dedicated app for partners or profit distribution, but you can track each partner’s capital, share of profits and drawings by adding accounts for them in the chart of accounts under Owner’s Equity:

1. Open the Chart of Accounts, then Owner’s Equity.
2. Add a Main Account named Partners (optional; to group the partners’ accounts), with the type Credit.
3. Under it, add two sub accounts of type Credit for each partner:
   • Partner Capital – (name): for what the partner paid in as capital.
   • Partner Current Account – (name): for their share of profits and their drawings.
4. Repeat for each partner.

Example of the final structure:

Account	Account Type	Type
Owner’s Equity	Main Account	Credit
— Partners	Main Account	Credit
—— Partner Capital – Ahmed	Sub Account	Credit
—— Partner Current Account – Ahmed	Sub Account	Credit
—— Partner Capital – Mohamed	Sub Account	Credit
—— Partner Current Account – Mohamed	Sub Account	Credit

Record the partners’ capital

Record what each partner paid with a journal entry. Example: Ahmed paid 120,000 and Mohamed paid 80,000 into the bank:

Account	Debit	Credit
Bank	200,000.00
Partner Capital – Ahmed		120,000.00
Partner Capital – Mohamed		80,000.00
Total	200,000.00	200,000.00

Distribute profits to partners

When you close the financial year, the net profit is carried forward automatically to the Retained Earnings account under equity. Then distribute it to the partners with a journal entry according to the agreed percentages.

Example: net profit is 100,000, Ahmed’s share is 60% and Mohamed’s is 40%:

Account	Debit	Credit
Retained Earnings	100,000.00
Partner Current Account – Ahmed		60,000.00
Partner Current Account – Mohamed		40,000.00
Total	100,000.00	100,000.00

• Find the net profit in the Income Statement report for the period, or from the Retained Earnings balance after closing.
• In case of a loss, reverse the entry: debit each partner’s current account, credit Retained Earnings.
• You can distribute monthly or quarterly the same way, with an entry from the period’s net profit.

Partner drawings

When you pay out profits or a partner withdraws an amount, record it on their current account. Example: paying 20,000 to Ahmed in cash:

Account	Debit	Credit
Partner Current Account – Ahmed	20,000.00
Main Treasury		20,000.00
Total	20,000.00	20,000.00

Or record it with an Expense and select the Partner Current Account – Ahmed account in it. At any time, the current account balance = the partner’s share of profits − their drawings.

To follow any partner’s movements, view the Ledger of their current account or capital account.

FAQ

I want to add more than one partner for the profits?

Add a capital account and a current account for each partner under equity, then distribute the net profit to them with a journal entry according to the percentages. Details.

Does the system distribute profits to partners automatically?

No. Closing only carries the net profit forward to the Retained Earnings account; the distribution is done with a manual entry.

A message says the code is already used?

The code is used by another account. Change it to a code that isn’t repeated.

Why can’t I add an account for a client or a treasury from the chart?

These accounts are created automatically from their apps (Clients, Treasuries…). Add the client or treasury from its own page.

Should I choose Debit or Credit for a partner account?

Credit, because capital and equity accounts are credit by nature.