Setting Up Your Chart of Accounts

Your chart of accounts is the foundation of your bookkeeping. It's the list of every account you'll use to categorize transactions — assets, liabilities, equity, revenue, and expenses. Getting this right upfront saves cleanup later.

Account types

Twin Owls uses the standard five account types from double-entry bookkeeping:

• Assets — What you own (bank accounts, receivables, property)
• Liabilities — What you owe (credit cards, loans, payables)
• Equity — Owner's stake in the business
• Revenue — Income earned from operations
• Expenses — Costs incurred to run the business

Numbering convention

Twin Owls defaults to a standard numbering scheme: 1xxx for assets, 2xxx for liabilities, 3xxx for equity, 4xxx for revenue, and 5xxx+ for expenses. You can use any scheme that works for you and your accountant, but consistency matters — it makes reports easier to scan.

Getting started

When you create a business, Twin Owls generates a default chart of accounts with common categories. You can add, rename, or deactivate accounts from the Accounts page. Most investors customize the expense accounts for their specific needs — adding categories like "Property Management," "HOA Fees," or "Maintenance & Repairs."