‘Chart of Accounts’ is found in Step 3 of the company setup.
This is a very important step in the setup process. The correct order and classification of accounts will ensure the accurate calculation of your financial KPIs and a meaningful presentation of your financial statements.
The first time you import from Xero, QuickBooks or MYOB, Fathom will do its best to replicate the existing chart of accounts structure from your source accounting system in order to provide a helpful layout to start.
On subsequent updates we will ignore any new headings or layout changes in the source accounting system and your layout changes in Fathom (including ordering, headings & classification of accounts) will all be retained.
While Fathom will automatically classify your accounts, you will want to quickly review the classifications provided.
You can reclassify accounts in three different ways:
- Using the ‘Reclassify’ menu. When you hover over an account, you will be able to click the ‘Reclassify’ button.
- Using drag and drop. Each account can be dragged into a different classification.
- Select multiple accounts by ticking the checkbox on the left of each account. An option to reclassify all selected accounts will appear at the top of the screen.
Expense & Cost of Sale Accounts
When determining the classification of expense and cost of sale accounts, it is important to consider the nature of the account.
For example, when examining an EXPENSE account – does this represent a fixed or variable expense? As well as the primary classification, you can further set the type of these accounts as you reclassify.
Changing the default classification
Each account has a default classification derived from your source accounting system.
If an account is moved to a classification that is of a different nature, then Fathom will automatically switch the sign of the amounts that have been imported for that account. For example, if an 'Expense' account with a value of $100 for January, is classified as a 'Revenue' then the amount will become -$100. In another example, if a balance sheet account is re-classified from 'Cash & Equivalents' to a 'Current Liability' then the amounts will similarly have their sign switched.
View the classification guidelines to see a detailed explanation about each account classification.
Customising the chart of accounts layout
Positioning and ordering
Accounts can be positioned by dragging them into different classifications or even moved within the same classification. The ordering and layout defined in the setup serves as the default layout, but this can be adjusted when looking at certain reports. For example, you may be able to sort by value or alphabetically in certain reports.
Selecting multiple accounts
You can quickly select a range of accounts by first selecting an account, then shift-click to select another account. All accounts between these two will be selected. This is useful if you have multiple accounts in a row that you wish to select.
Headings and Subheadings
Fathom allows you to group different accounts under headings and subheadings. This allows for customisation of your chart of accounts, that will flow down into the financial Analysis and Reporting tools. For more information, visit our guide to Headings.
You can quickly identify the status of an account using a small coloured indicator. For more information, visit our guide to Account Status.
Troubleshooting account classification
There are a number of ways you can investigate problems with classification of accounts. We recommend that you first go to 'Analysis > Financials' and change the view to look at the highest level of detail. You will be able to see the accounts, their values and how they are classified.
To look at the same information across a number of periods, use the Excel report titled 'Financial Results (in the Fathom import format)'.