Step 1: Navigate to the “Accounting” tab in the sidebar.
Step 2: Navigate to the “Chart of accounts” section.
Step 3: Click on the “+ New account” button.
Step 4: Select an existing account to which the new sub-account will relate and click “Continue.” OR add a new parent account
Step 5: Create a 5-digit number to represent the new account. While not required, the selected number would typically relate to the parent account, would not duplicate any existing account numbers, would be lower than a subsequent grouping of numbers, and would be logically consistent with any other sub-accounts that have been created. While you do not have to adhere to these, it may help keep things orderly and give you a starting point!
For additional guidance, see Puzzle's account numbering conventions below.
Account Numbering Conventions
Account Numbering Conventions
10000-Series: Asset accounts
10000-14999 >>> Current
Order of liquidity**
10000-10999 >>> Cash and Cash Equivalents
11000-11999 >>> Marketable Securities and Investments, Reserves of Cash
12000-12999 >>> Accounts receivable
13000-13999 >>> Prepaid Assets & Other Current Assets
13000-13499 >>> Prepaid Assets
13500-13999 >>> Other Current Assets
13600-13699 >>> Current tax assets
14000-14999 >>> Inventory
15000-19999 >>> Noncurrent
Order of liquidity**
15000-16999 Fixed Assets
Buildings
Machines
Land
16000-16999 Investments
17000-17999 Intangible Assets
18000-18999 Goodwill
19000-19999 Other Noncurrent Assets
19600-19699 >>> Noncurrent tax liabilities
20000-Series: Liability accounts
20000-25999 >>> Current
20000-20999 >>> AP to Vendors
21000-21999 >>> AP Payables to Other Parties
21100 >>> payables to CC companies
21200 >>> payables to Benefits Provider
21900 >>> Interco payables
22000-22999 >>> Short-term notes payable and Debt due in <12 months
23000-23999 >>> Accrued Payroll
24000-24999 >>> Deferred Revenue <12 months
25000-25999 >>> Accrued Taxes, Leases, Interest, Other
26000-29999 >>> Noncurrent
26000-26999 >>> Debt due in >12 months
27000-27999 >>> Deferred Revenue >12 months
29000-29999 >>> Other Noncurrent Liabilities
30000-series: Equity accounts
30000-30999 >>> Common stock and related accounts
31000-31999 >>> Preferred stock and related accounts
32000-32999 >>> SAFEs, hybrid equity instruments, and related accounts
33000-33999 >>> APIC.
34000-34999 >>> Retained earnings and related accounts
35000-35999 >>> Other equity
39000-39999 >>> Accumulated Other Comprehensive Income and related accounts
40000-series: Revenue accounts (operating revenue only)
40000-40999 >>> Subscription Revenue
41000-41999 >>> Services Revenue
42000-42999 >>> Transaction Revenue
43000-43999 >>> Usage Revenue
48000-48999 >>> Partnership Revenue
49000-49999 >>> Miscellaneous Revenue
50000-series: Cost of revenue accounts
50000-50999 >>> Cost of Materials
51000-51999 >>> Hosting Fees
52000-52999 >>> CoR Software used directly in delivery of product or services
53000-53999 >>> Payment Processor Fees
54000-54999 >>> Shipping Costs
55000-55999 >>> Allocated salaries and labor
56000-58999 >>> [UNDEFINED - possibly: overhead allocations, packaging, etc. - depends on industry]
59000-59999 >>> Other
60000-series: Standard operating expense accounts (standard purchases and disbursement categories)
60000-60999 >>> Payroll
61000-61999 >>> Other Employee Costs
62000-62999 >>> Travel
63000-63999 >>> Meals & Entertainment
64000-64999 >>> Professional Services
65000-65999 >>> Sales & Marketing
66000-66999 >>> Technology & Software
67000-67999 >>> Facilities
68000-68999 >>> General Operations
69000-69990 >>> [UNDEFINED - can be used by users for additional exp categories]
70000-series: Other operating expense accounts (non-cash expenses and miscellaneous operating expenses not directly related to expected ongoing operations)
70000-70999 >>> Depreciation
71000-71999 >>> Amortization of intangibles
72000-72999 >>> Amortization of goodwill
73000-75999 >>> [UNDEFINED]
76000-76999 >>> Bad debt expense (write offs and reserve)
77000-78999 >>> [UNDEFINED]
79000-79000 >>> Other & misc operating expense
8 = Non-Operating income accounts
80000-80999 >>> Non-Operating Income & Expenses
81000-82999 >>> [UNDEFINED - users can use for their specific income and expense types if desired]
83000-83999 >>> Credit Card Rewards
84000-85999 >>> [UNDEFINED]
86000-86999 >>> Taxes
87000-87999 >>> Interest Expense
88000-88999 >>> Interest and Dividend Income
89000-89999 >>> Other (misc)
9 = Uncategorized and P&L clearing (requires attention to resolve)
91000-91999 >>> Uncategorized Revenue
92000-92999 >>> Uncategorized Expense
93000-93999 >>> [UNDEFINED]
Ending conventions
005, 050, and 500 >>> Contra-account
For an account with multiple contra-accounts (e.g. refunds and discounts for revenue), add intervals of 10
9, 99, and 999 >>> Adjustment account
98 and 998, then 97, 997 should be used if there are multiple types of adjustment accounts
Note 1: The “5” ending conventions are appended starting with the first zero of the related account but not before the 2nd digit, and the “9” ending can start after the 1st digit (e.g. 42000 becomes 42500 or 42999, while 40000 becomes 40500 or 49999)
However, the number should not be greater than then next-highest account number to which the manual adjustment does not apply (e.g. if 40000 is subscription revenue and 41000 is services revenue, 40999 should be the manual adjustment account rather than 49999, even though the 2nd digit slot is available.)
Note 2: If the contra-account is not related to a specific account but is more of a general “catchall” contra-account (e.g. manual JEs to adjust revenue that includes multiple revenue streams), these can go at the end of a grouping of accounts rather than after a specific account.
Step 6: Select an account type. You will have two options: 1) the account type of the account selected in Step 4 and 2) a “contra” account of the account selected in Step 4. In most cases, you would use Option #1. Option #2 would be used if the new account is for transactions that are opposite of the parent account, such as discounts (for a revenue account) or reserves (for a receivable account).
Step 7: Add an account name. While the name can be anything you want, it may be useful be descriptive enough to distinguish it but not too specific to be hard to read.
Step 8: Add a brief description of what is included in the account. The description may help when referencing later to clarify what should be included and excluded when using this account.
Step 9 (optional): Add any keywords if they will help you later to search for the right account when you are categorizing transactions. For example, you may add common vendors or specific varieties of transactions that would relate to this account.
Step 10: Review the account details and click “Create.”
Step 11: Confirm that the account was correctly added to the chart of accounts within Puzzle. It may take a minute to sync. Also, confirm that the account appears to have the correct information and is listed in the expected order.
Step 12: Now you can post to this account by selecting the applicable category within the Transactions tab!
If you have any issues or questions along the way, reach out to [email protected] — we will be able to help troubleshoot!