Classifications

Classifications are used to breakdown balances and calculate net income or loss for the period. After modifying the classifications, you can also create a grouping list template to use the modified classifications in other engagements.

This is a list of default account classifications:

  • Current Assets

  • Non-Current Assets

  • Current Liabilities

  • Non-Current Liabilities

  • Equity

  • Revenues

  • Cost of Revenue

  • Other Income

  • Operating Expenses

  • Other Expenses

  1. Click on the navigation bar and select Trial Balance.

  1. Click Classifications.

  1. Select Account Classification from the drop-down list.

  1. Click Add New.

  2. Enter the Abbreviation and Description and select Type from the drop-down list.

  3. Click Save.

Note: You cannot add or delete Account Type classifications.

  1. Click on the navigation bar and select Trial Balance.

  1. Click Classifications.

  1. Select Account Classification from the drop-down list.

  1. Edit the Abbreviation and Description and select Type from the drop-down list.

  2. To change the order of classification, click and drag the classification to the desired location.

    Important: Financial statements are categorized based on the sort order of account classifications.

  3. Click Save.

Note: You cannot add or delete Account Type classifications.

  1. Click on the navigation bar and select Trial Balance.

  1. Click Classifications.

  1. Select Account Type from the drop-down list.

  1. Edit the description for Asset, Liability, Equity, Revenue, or Expense.

  2. Click Save.

Note: Account types cannot be deleted.

  1. Click on the navigation bar and select Trial Balance.

  1. Click Classifications.

  1. Select Account Classification from the drop-down list.

  1. Click to remove classifications from the trial balance

Note: Classifications that are assigned to one or more groups cannot be deleted. You will need to remove the classification from the groups or delete the groups associated with the classification.