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.
    Category List also known as a Chart of Accounts
    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. 

    Creating a new category for your chart of accounts
  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. 

Tip: The system doesn't use sub-categories per se. Instead, categories are organized by a reference number which can be edited in a subcategory fashion. 

System Note: To help with this process, the system will allow you to use decimal points to help with this process.  This allows you to group them together by numbering them the same and adding a decimal point to each one. 

For example: 
6250.1 Utilities - Water
6250.2 Utilities - Electric
6250.3 Utilities - Gas
This is handy when pulling category ledger reports which allows you to pull by one single category or multiple categories at once. 
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