Set up your chart of accounts

Goal: Understand and lightly tailor your Chart of Accounts — the list of “buckets” your money is organized into — so your reports make sense for your business.

A starting Chart of Accounts is created for you automatically based on your country, so most businesses can begin without changing anything. This guide explains what it is and how to make small adjustments when you need them.

[SCREENSHOT TODO: Chart of Accounts tree in Paldo BOS]

Before you start

You’ve completed your company setup.
If you have an accountant, it’s worth checking changes with them.

Understand the basics

Your Chart of Accounts is a tree with a few main types:

Assets — what you own (bank, cash, money owed to you).
Liabilities — what you owe (suppliers, loans, tax payable).
Income — money you earn from sales.
Expenses — money you spend to run the business.
Equity — the owners’ stake.

Two kinds of entries appear in the tree:

Groups — folders that contain other accounts (you don’t post directly to these).
Ledgers — the actual accounts you record transactions against.

Steps

1. Open the Chart of Accounts

In the search bar, type Chart of Accounts and open it.
Expand the groups to see the ledger accounts inside.

2. Add an account (when you need one)

Hover over the group where the new account belongs and choose to add a child.
Enter the account name.
Choose whether it’s a group (a folder) or a ledger (an account you post to).
Save.

3. Rename or reorganize carefully

You can rename accounts to match your language, and move accounts between groups.
Avoid deleting or merging accounts once you’ve recorded transactions against them.

Caution: changing accounts that already have transactions can affect past reports. Make structural changes early, and check with your accountant if unsure.

You’re done when…

Your Chart of Accounts reflects the way you think about your money, and your financial reports group income and expenses the way you expect.