GL account Types

There are five GL account Types. 

They are: Assets, Liabilities, Revenue, Expenses and Capital. 

• Assets, are what one owns.  This can include cars, buildings, cash, bank accounts and equipment.  

• Liabilities, are what one owes, such as unpaid expenses and loans.

• Revenue, is money that is earned.

• Expenses, is money that is spent. 

• Capital, is owner's equity. Not-for-profit organizations use the word 'Surplus' instead of 'Capital'.  Capital or Surplus accounts are not used in TeemWork.

Below is a slide of the drop down GL account 'Type' list.  This list is located in the 'Manage GL Accounts' window.

Many GL accounts can be of the same Type.  

For example, the GL account Type 'Expenses' can be associated with numerous GL accounts, that are used to post expenses, such as for telephone service, electricity, rent and employees wages.  

The number of GL accounts used depends on the accounting detail that is required. 

For example, if you have important long distance phone charges, you may want a separate GL account for 'Long distance phone' expenses and another GL account for 'Local phone service' expenses. If you have minimal long distance phone charges, you may decide to use only one GL account to post all your telephone expenses.

Below is a sample list of some GL accounts.

As you can see, each GL account has a Number, a Type and a Name.  

Even if this is not required in TeemWork, usually all GL account Numbers are of the same length and usually, all GL accounts of a given Type begin with the same digit. 

In TeemWork, GL accounts are added, modified and viewed in the 'Manage GL Accounts' window.  

The 'Manage GL Accounts' window in displayed below.  In this example, the GL account 'Local phone service' is highlighted.  This indicates that it is selected. 

The details of the selected GL account appears in the tab.

As you can see, the GL account Number for 'Local phone service' is '4400' and its GL account Type is 'Expense'. 

Related topics:

For more information about GL accounts, you can read 'What is a GL account Code?',  'GL Account Debits and Credits' and 'How to add a GL account?'

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