Account Type and Property

An account has two settings:

The Account Type specifies where to summarize the account in the summary financial statements.

The Account Property specifies any special handling that the account requires. To correctly calculate ratios and determine cash flows, it is important that certain items are properly accounted for.

Account Property Example

Interest can be included in Cost of Goods Sold and in Operating Expenses, but ratios that use interest as an input should include all interest. Setting the Account Property to Interest will ensure that the ratios are calculated correctly.

Changing an Account's Settings

To change an account's settings:

Select the account that you want to change.

Click on the Edit Account button on the Desktop Toolbar. The Change Account Settings Dialog Box will open.

Use the dialog box to select the account's new settings.