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How to Customize Chart of Accounts

Introduction

The Chart of Accounts (COA) is the foundation for your accounting setup. These are the General Ledger accounts to which all transactions are posted. For law firms, there are certain accounts that set this apart from more generic business chart of accounts. CosmoLex comes with a complete chart of accounts, ready for all your business needs and with the needed legal-specific accounts, making it easier to hit the ground running when implementing CosmoLex for your firm.

While we strive to provide a complete out-of-box solution, your firm may have needs to track specific financial information relevant to only your own firm. You may need to add your own account to the COA, change account types, or create sub-accounts. 

Before customizing your COA, we recommend that you consult with your accountant or a CosmoLex Certified Consultant. 

Certain accounts are system-defined and cannot be changed. This may be due to the fact that they are tied in to automated legal-specific accounting features that help with compliance. Examples include:

  • 2300: Client Trust Funds
  • 2320: Client General Retainer
  • 4100: Fee Income

Watch a Video

Create Custom Account in COA

1. Click the Accounting Tab

2. Click the Chart of Accounts

3. Click  Add to add a new account

4. Complete the Add Account screen.

  • Number – Each account in the COA is assigned an identification number for easy tracking. Typically this number is four digits long but the system allows you to enter eight digits as an identification number. It is a good idea to use a number close in sequence to accounts of the same type.
  • Account Name – Name your new account
  • Account Type – This is the most critical field  of your COA creation. This will determine how and where your custom COA will be represented on your Accounting Reports. If you are unsure what type your custom COA should be, seek the advice of your accountant.
  • Sub-Account of – check this box if you’d like to create a parent-child relationship with an existing account. After checking the box, you will be able to select the parent account from the drop-down menu.
  • Description – enter a description for your new account for your reference

5. When ready, click Save

Once saved, your new account will appear in your COA and you will be ready to start using it!

Edit Existing Account in COA

You may want to edit an existing account to make needed changes. For example, you may want to change the account type. To make changes to an existing account, follow these instructions:

1. Click the Accounting Tab

2. Click the Chart of Accounts

3. Select the desired account and click  Edit

While the system-defined accounts (like the ones listed above) may not be deleted, certain information can be edited

4. In the Edit Account screen, make needed changes. 

5. When ready, click Save

Delete Existing Account in COA

1. Click the Accounting Tab

2. Click the Chart of Accounts

3. Select the desired account and click Delete

Note: We can not delete system defined chart of accounts. We can only edit account name.

Learn More

General Ledger Report

Updated on June 11, 2019

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