The exchange of goods, assets, and financial transactions is an integral part of any company, and recording them is key as it keeps track of the company’s activities. This is done by matching this transaction to specific accounts as the nature and use of an account determines its type.

Equity is what the company is worth and it shows how much the owners have contributed in total.

Fixed assets represent the company’s long-term assets like a building or a company vehicle.

Liabilities are the activities from your past the company has to pay in the future like vendor bills

Current Assets are a company’s short-term goals like customer invoices you have issued and the client hasn’t paid yet.

Bank and Cash accounts reflect the money that you have or don’t have in your accounts.

Income accounts show all the revenue your company has accumulated

Expense accounts are all the costs you incur to support your business e.g salaries and petty cash.

In Odoo the Chart of Accounts (COA) has a column for the code which is unique and can’t be used to denote another account, so it has to be sequential. Then the account name and the account type e.g equity, income, or expense and an allow reconciliation button e.g. bank accounts statements or new payments that are registered in the database. The reconciliation button is mainly key for big account types like receivables or payable. Finally, a setup button to show you the transactions made e.g in receivables in the form of credit, debit, amount, and the currency too.

There is also an option of creating a new account and it is advisable to duplicate an existing one and edit the details therein, the duplicate button is found in the action button once a Chart of Accounts has been selected. This way Odoo assigns an already new and unique code.

You can also Import and export your chart of accounts if you want to edit them by selecting all the charts of accounts and exporting them, editing them then importing them from the favorite section. The accounts that you’re not using can be archived instead of deleting them to prevent error messages from popping up.