Understand account types and normal balances
See QixCount's five account types and how debit and credit balances are assigned to new accounts.
- Who can do this
- Owners, or people with View chart of accounts; adding needs Create accounts; changes need Edit accounts
- Where
- Books, then Chart of accounts
- You'll need
- Advanced accounting turned on in Features
On this page
An account type places an account in one of QixCount's five main categories. A normal balance is the debit or credit side QixCount assigns to that account. Debit and credit are the two amount columns on a journal line.
These are the defaults for a new account that does not use a contra detail type:
| Account type | Description on the create form | Default normal balance |
|---|---|---|
| Asset | What you own | Debit |
| Liability | What you owe | Credit |
| Equity | Owner's stake | Credit |
| Revenue | Money earned | Credit |
| Expense | Money spent | Debit |
For a debit-normal account, QixCount calculates the account-list balance as debits minus credits. For a credit-normal account, it calculates credits minus debits. Only posted journal lines contribute to that balance. Parent and child accounts each have their own lines.
Choose a detail type
Detail Type on the create form, called Subtype on the edit form, gives the account a more specific classification. Its available choices depend on Account Type. It is optional, but an entered subtype must belong to the selected type.
Some detail types create contra accounts with the opposite normal balance. For example, Accumulated Depreciation is an asset detail type that receives a credit normal balance when the account is created. See contra accounts for the complete list QixCount recognizes.
If Normal Balance or Current Balance conflicts with the balance you expect, contact support before recording a correction. If you need to change an existing account's type or subtype, ask support to review its balance settings first.
Owners and users with Create accounts can add accounts. Edit accounts is needed for later changes. Next, add an account.