> For the complete documentation index, see [llms.txt](https://tribalfs.gitbook.io/accountant/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tribalfs.gitbook.io/accountant/accounts/setting-up-accounts.md).
# Setting up accounts
Add your cash, bank accounts, cards, loans, income and expense accounts.
**What you'll do:** add your real-world accounts with their current balances, so Accountant starts from where you are today.
## How your accounts are organized
Think of a filing cabinet. Your **account structure** has three levels, from the broadest to the most specific:
1. **Account type**: the drawer. There are only four, and every account belongs to one of them:
* **Asset**: what you own, such as cash, bank balances, and money others owe you
* **Liability**: what you owe, such as credit cards and loans
* **Income**: what you earn, such as salary and interest
* **Expense**: what you spend on, such as food, rent and bills
2. **Account category**: a folder inside the drawer. It groups similar accounts, so a long list stays tidy.
3. **Account**: the actual record inside the folder. This is where amounts go. Every transaction moves money into or out of accounts, and each account keeps its own balance.
Here's how part of the demo ledger looks:
```
Asset (account type)
├── Cash on hand (category)
│ ├── Wallet (account)
│ └── Pocket cash (account)
└── Cash in bank (category)
├── Everyday checking (account)
└── Emergency savings (account)
Expense (account type)
├── Household (category)
│ ├── Groceries (account)
│ └── Apartment rent (account)
└── Utilities (category)
├── Electricity (account)
└── Home internet (account)
```
On the **Accounts** screen, the four tabs (**Assets**, **Liabilities**, **Income** and **Expenses**) are the account types. Each heading inside a tab, such as *Cash on hand*, is a category, and the rows under it are your accounts.
The Assets tab: the "Cash on hand" category and its accounts
{% hint style="info" %}
**In Accountant, a category is not an account.**
Many money apps use the word "category" for the things you spend on, like *Groceries* or *Rent*. In Accountant, *Groceries* and *Rent* are **expense accounts**. They're where your spending is recorded, and you can give each one a budget.
A **category** is only the folder that groups accounts together, such as *Household* holding *Groceries* and *Rent*. You never record money in a category; you record it in an account. And categories aren't just for expenses: every account type has them. *Cash in bank* groups your bank accounts, and *Credit card* groups your cards.
{% endhint %}
Why only four account types? See [the basic accounting equation](/accountant/fundamentals/understanding-the-basic-accounting-equation.md).
### The categories you start with
| Account type | Default categories |
| ------------- | ------------------------------------------------------------------------------------------- |
| **Asset** | Cash on hand, Receivables, Cash in bank, E-wallet, Investments, Real estate, Virtual assets |
| **Liability** | Credit card, Payables, Mortgage loan, Other loans, Other liabilities |
| **Income** | Investment income, Business income, Work |
| **Expense** | Car, Subscriptions, Household, Utilities, Finance charges |
Most of these are **built-in**: you can't delete them, rename them or move them to another account type, because features depend on them. *Real estate*, *Other liabilities*, *Business income* and *Subscriptions* can be renamed or deleted. You can add your own categories too. See [Account categories](/accountant/accounts/categories.md).
## Add an account
1. Open **Accounts** (on phones, **More › Accounts**) and tap **+**.
2. Choose the **Account type**: **Asset**, **Liability**, **Expense** or **Income**. It can't be changed after the account is created.
3. Tap **Category** and choose the group it belongs in, such as *Cash in bank*.
4. Enter the **Account name**, for example *Everyday checking*, and optionally an **Account description**.
5. For assets and liabilities, choose the **Currency** if it isn't your reporting currency. See [Multi-currency](/accountant/transactions/multi-currency.md).
6. Check **Cash account**. See below.
7. Turn on **Opening balance** to enter what the account holds (or owes) today. Tap the amount to type it, or use the calculator, then tap **Done**. Set the **Opening balance date** with the date and time buttons under it.
8. Tap **Save**.
Adding an asset account
### Cash accounts
**Cash account** marks money you can spend directly: *"Money held as cash or in a bank or e-wallet. Included in cash flow reports."*
* Only cash accounts can be used for **Pay from**, **Deposit into** and **Transfer money**.
* The **Cash flow** report and the **Cash balance** widget count only cash accounts.
* In *Cash on hand*, *Cash in bank* and *E-wallet* it's always on: *"Always on in this category."*
* Once posted or scheduled transactions use the account as cash, or while it has [bank details](/accountant/accounts/bank-details.md), it can't be turned off.
Leave it off for investments, property, receivables, cards and loans.
### Opening balances
An opening balance is money or debt you already had before you started using Accountant. It's not income or an expense. Use today's balance, or your balance on the first day you plan to record transactions from.
{% hint style="info" %}
**Loans and credit cards:** enter what you owe now as the opening balance of the liability account. Loan payment tracking needs a positive balance before you can [set up payments](/accountant/planning/loans.md).
{% endhint %}
## Budgets and income targets
On an **Expense** account, turn on **Set budget**. Tap the amount to open the **Budget** dialog, enter the **Amount**, choose a **Budget period**, such as **Monthly**, and tap **Done**. On an **Income** account, the switch is **Set income target**, and the dialog has the **Income target** and its **Target period**. See [Budgets](/accountant/planning/budgets.md).
A monthly budget on an expense account
## The Accounts list
Each row shows what the account holds as of today:
* **Asset and liability accounts:** the balance in the account's own currency and the number of transactions, for example *"₱12,345.00 · 34 transactions"*.
* **Income and expense accounts:** the number of transactions.
* **Asset and liability category headings:** the total in your reporting currency and the number of accounts, for example *"$35,605.80 · 5 accounts"*.
Inactive accounts and categories are shown struck through.
## Edit, deactivate or delete
Tap an account to edit it. Tap the list button (☰) next to it, or **Account transactions** in the editor, to see its transactions. See [Account transactions](/accountant/accounts/account-transactions.md).
* **Active** / **Inactive:** *"Inactive accounts can't be used for new transactions. Their balances still appear in reports."* Use this for accounts you've closed.
* **Delete:** **⋮ › Delete** in the account editor. An account with transactions can't be deleted: *"This account has transactions. Move them to another account or delete them before deleting this account."* Deleting an account also deletes its card, loan, bank details and depreciation settings, and its links to savings goals.
* **Built-in accounts**, such as *Wallet*, can't be deleted: *"Built-in account. Its name, type and category can't be changed."*
* To act on several at once, touch and hold an account in the list, then **Deactivate**, **Activate**, **Copy**, **Delete** or **Change category**.
Default categories and accounts you haven't renamed follow the app's language when you change it.
## Special accounts
The account editor shows an extra button for accounts with their own tools:
| Account | Button | See |
| ------------------------------------------------ | ----------------------------------------------------------------------- | ---------------------------------------------------- |
| *Credit card* category | **Payment settings**, then **View statements and payments** once set up | [Credit cards](/accountant/planning/credit-cards.md) |
| *Mortgage loan* or *Other loans* category | **Set up loan payments**, then **Loan overview** | [Loans](/accountant/planning/loans.md) |
| *Cash in bank* or *E-wallet* category | **Set up bank details**, then **Bank details** | [Bank details](/accountant/accounts/bank-details.md) |
| Other non-cash assets, such as a car or a laptop | **Set up depreciation**, then **Depreciation** | [Depreciation](/accountant/accounts/depreciation.md) |
* An asset in the *Investments* category can hold shares or fund units instead of money. See [Stocks and funds](/accountant/accounts/stocks-and-funds.md).
* Asset accounts can be linked to [savings goals](/accountant/planning/savings-goals.md).
