# Understand account types and normal balances

See QixCount's five account types and how debit and credit balances are assigned to new accounts.

Canonical: https://demo.qixcount.com/help/accounts-and-journals/account-types-and-normal-balances

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

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](https://demo.qixcount.com/help/accounts-and-journals/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](https://demo.qixcount.com/help/accounts-and-journals/add-an-account).