> For the complete documentation index, see [llms.txt](https://now-8.gitbook.io/now.-features/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://now-8.gitbook.io/now.-features/accounting/chart-of-accounts.md).

# Chart of Accounts

The **Chart of Accounts** is the master list of categories used to classify every financial transaction in your business. Think of it as the filing system for your money — every dollar that moves in or out gets assigned to one of these accounts.

now. automatically generates your Chart of Accounts during setup, based on your business entity type and industry. You can customize it at any time.

#### How to Find It

From the bottom tab bar, tap the clipboard icon to open the **Chart of Accounts** screen.

#### How the List Is Organized

Accounts are grouped by type:

1. **Assets** — What your business owns (bank accounts, cash, money owed to you, inventory)
2. **Liabilities** — What your business owes (credit cards, loans, bills payable, sales tax payable)
3. **Equity** — The owner's stake in the business
4. **Income** — Money earned from sales or services
5. **Cost of Goods Sold** — Direct costs tied to producing what you sell
6. **Expenses** — Money spent running the business

Sub-accounts are indented under their parent accounts.

Permanent accounts (Assets, Liabilities, Equity) display their current balance in the list. Temporary accounts (Income, Expenses, COGS) don't show a running balance — their activity is reflected on reports.

#### Account Subcategories

Each account type includes subcategories that help organize your books:

| Account Type           | Subcategories                                                                        |
| ---------------------- | ------------------------------------------------------------------------------------ |
| **Assets**             | Assets, Fixed Assets, Other Assets, Bank, Accounts Receivable                        |
| **Liabilities**        | Liabilities, Long-Term Liabilities, Other Liabilities, Credit Card, Accounts Payable |
| **Equity**             | Equity                                                                               |
| **Income**             | Income, Other Income                                                                 |
| **Cost of Goods Sold** | Cost of Goods Sold                                                                   |
| **Expenses**           | Expense, Other Expense                                                               |

#### System-Protected Accounts

Some accounts are essential to how now. does automatic bookkeeping. They cannot be edited, archived, or deleted:

| Account                    | Purpose                                                      |
| -------------------------- | ------------------------------------------------------------ |
| **Accounts Receivable**    | Tracks money your customers owe you (from invoices)          |
| **Inventory Asset**        | Holds the cost of products you have on hand                  |
| **Sales Tax Payable**      | Tracks sales tax you've collected and owe to authorities     |
| **Accounts Payable**       | Tracks money you owe your vendors (from bills)               |
| **Opening Balance Equity** | Records starting balances when you connect bank accounts     |
| **Retained Earnings**      | Net income from prior closed fiscal years (where applicable) |
| **Cost of Goods Sold**     | Cost of inventory you've sold this period                    |
| **Inventory Shrinkage**    | Loss of inventory due to damage, theft, or count adjustments |
| **Sales Tax Paid**         | Purchase tax you've paid on bills                            |

In addition, any income or COGS account that you've selected as the income or COGS account for an inventory product becomes protected — you can't archive or delete it while a tracked product depends on it.

#### Default Equity Accounts

Equity accounts vary by entity type:

* **Sole Proprietorship** — Owner's Equity, Owner's Contributions, Owner's Draws
* **LLC (single-member)** — Member's Equity, Member's Contributions, Member's Draws
* **LLC (multi-member) / Partnership** — Partners' Equity, Partners' Contributions, Partners' Distributions
* **S-Corp** — Common Stock, Additional Paid-In Capital, Distributions, Retained Earnings
* **C-Corp** — Common Stock, Additional Paid-In Capital, Dividends, Retained Earnings

#### Creating a Custom Account

1. Tap the **+** button on the Chart of Accounts screen.
2. Choose a **category** (Asset, Liability, Equity, Income, COGS, or Expense).
3. Select a **subcategory**.
4. Enter the **account name**. Names must be unique (case-insensitive).
5. Optionally toggle **Subaccount** to make it a child of an existing account. The parent must be the same account type.

now. assigns the next available account number automatically based on the subcategory.

#### Editing an Account

Tap an account in the list to open its detail, then tap **Edit**.

You can change:

* Account name
* Parent account (to make it a subaccount or change its parent)

You cannot change:

* Account type
* Subcategory

System-protected accounts don't show the Edit or Archive buttons.

#### Archiving an Account

If you no longer use an account but want to keep its history, archive it.

* Open the account detail and tap **Archive**.
* Archived accounts are hidden from pickers but remain in the system.
* To restore, open the archived account and tap **Unarchive**.

Archiving is **not available** for accounts that have journal entry history or for system-protected accounts.

#### Deleting an Account

Accounts can only be deleted if they have **no dependencies** — no transactions, journal entries, or other records linked to them. If an account has been used, the app explains why it can't be deleted. Use archive instead.

#### Searching

Use the search bar to filter by account name, type, number, or subcategory.

#### Related

* Getting Started
* Inventory and COGS
* Sales Tax
* Journal Entries


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://now-8.gitbook.io/now.-features/accounting/chart-of-accounts.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.