NetSuite Implementation Cheat Sheet: Chart of Accounts - Account Types

Congratulations! You just bought NetSuite and are now ready to implement. 

First Step: Load your Chart of Accounts. 

For the non-accountants out there, here are some basic understanding of Chart of Accounts ("COA").  COA is the foundation of your ERP system. COA governs how you group and report on your financial statements.  Basically, financial statements adhere to this general accounting formula: Assets + Expenses = Equity + Liabilities + Income.  The formula makes sure to balance your financials. 

Though the transactions and details can be complex, the simple breakdown of the formula is:

1. One side is cash flowing out (Disbursement):
   1. Purchasing Assets
   2. Paying expenses
2. Other side is cash flowing in
   1. Equity: investments coming in
   2. Liabilities or debt: money either not leaving the company right away or borrowed money
   3. Income: money coming in from sales

To create your individual accounts, you will need to designate Categories and Account Types. Categories equal the variables in the general accounting formula stated above: Assets, Expenses, Equity, Liabilities, Income.  Account Types are a subset of Categories.

NetSuite has standard Account Types and Categories it wants you to adhere to. Note: these CANNOT be changed or added/deleted in NetSuite. You have to structure your COA around these Types and Categories.  You can create as many accounts as you want but will have to select the predefined Account Types and Categories. The Standard Financial Reports in NetSuite are built on these categories.

Here is a table of the standard Account Types and Categories:

 If you need help loading your Chart of Accounts, reach out to us and we'll be happy to assist.