Setting Up Categories (Chart Of Accounts)

Setting up categories (also known as a chart of accounts) allows you run specific reports and processing important tax documents such as 1099s directly from the software. The software includes some common transaction categories but it's easy customize these and add additional categories as needed.

Creating a New Category

In your Rentec Direct account: 

1. Click on Settings.
2. Choose Income & Expense Categories.
   
   Note: Here is where you will set up and manage your categories (aka Chart of Accounts). A few default income and expense categories have already been entered for you.  
3. Click Add Category.
4. Enter a Description.
5. Choose the transaction Type these will apply. Your choices are Income, Expense, and Other.
   
   System Note: The 'other' category is used for ledger adjustments and will not be reflected on the income/expense reports. 
6. Set a Reference Number or allow the system to AutoNumber them for you.
7. Use the Schedule E items drop-down menu if this category should influence your Schedule-E. We recommend you speak to your accountant to discuss your specific tax requirements. 
   
   
8. Click Post New Category to save. 

Tip:  We offer a Financial Report called 'Category Ledger' that is very useful for analyzing the transactions posted to each category.

More information about financial reports can be found here: Financial Reports

Editing Categories

In the picture above, you'll see some categories have already been entered for you. Those, plus the ones you create can be edited for your business needs.

In your Rentec Direct account:

1. Click on Settings.
2. Choose Income & Expense Categories.
3. Click on the paper/pencil icon to edit. 
4. Click Save Changes. 

Organizing Categories (creating sub-categories)

You may get a request from your accountant to use specific categories, you may need to match categories for uploading to Quickbooks or other accounting software, or desire to have categories numbered and arranged to your business needs. To accomplish this, simply use the instruction above to edit.