Income

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Income (also referred to as Revenue) is the monetary inflow into the business, it can also be increases in Assets or decreases of Liabilities that result in an increase in Equity

Income accounts are all grouped together in your Chart of Accounts and are all Profit and Loss accounts.

The more specific your income accounts are the more meaningful your profit and loss and Management Reports will be.

An example of some income accounts

Simple:(try not to use this example)

  • 4100 Sales
  • 4200 Interest Income
  • 4300 Grants

Advanced:(use this example)

  • 4100 Sales
    • 4110 Sales Retail
      • 4111 Sales (primary stock) shoes
      • 4115 Sales (secondary stock) shoe polish
    • 4120 Sales Wholesale
    • 4130 Sales Online store
    • 4140 Sales Training
    • 4150 Sales Commissions
    • 4160 Interest Income
      • 4162 Interest Income trading account
      • 4163 Interest Income investment account
    • 4170 Grants
      • 4172 Grants local
      • 4174 Grants State
      • 4176 Grants Federal