How to use Ledger Accounts in VOGSY

Using ledger accounts in VOGSY is essential for accurate financial tracking and seamless integration with external accounting software. These accounts form the foundation of financial reporting in VOGSY, categorizing all income, expenses, assets, and liabilities within your projects and company.

Ledger accounts are configured and managed within the VOGSY back office. To access these settings, you need the 'Support staff' role, which is a super user role with administrative configuration permissions.

VOGSY allows you to set up a chart of accounts. This can be a comprehensive list of all the ledger accounts your company uses if your goal is to manage your entire accounting process within VOGSY. Or it can be a smaller subset of ledger accounts that are tailored specifically to project-based financial tracking (project accounting).

This structure is crucial for organizing your financial data. When setting up your ledger accounts, you'll define:  

• Account Number: A unique identifier for each ledger account. A structured numbering system helps in organizing accounts by type (e.g., assets, liabilities, revenue, expenses).  

• Account Name: A descriptive name for the ledger account.

• Account Type: Classifying the ledger account (e.g., Debit balance sheet account, Credit balance sheet account, Profit and Loss account). This classification is critical for proper financial reporting.  

• Distribute to projects: This is a checkbox indicating whether you should also book the journal entry to a project when booking on this ledger account.

• KPI attribute: KPI attributes are used to calculate financial KPIs. Each ledger account must be assigned to a KPI attribute.

  Using these KPI attributes enables you to use them in formulas to calculate each KPI.

VOGSY provides a default set of ledger accounts to get you started. You can then modify or expand this list to match your business-specific needs and your external accounting software's chart of accounts.

A key aspect of using ledger accounts in VOGSY is linking them to various master tables that categorize your business's income and expenses, specifically:

• Revenue Types: You can define different revenue types based on your services or products. Each revenue type can be linked to specific ledger accounts for revenue postings. This allows you to track revenue from different sources to designated income accounts.  

• Cost Types: Similarly, you can categorize various project-related costs (e.g., labor costs, material costs). These cost types can be linked to specific ledger accounts for cost postings.  

• Expense Types: You can set up expense types for operational expenses (e.g., travel, and software subscriptions) and link them to relevant expense ledger accounts.

The primary function of linking ledger accounts to revenue, cost, and expense types is to automate and ensure accurate financial postings when transactions occur in VOGSY.

To enable synchronization with platforms like Xero, QuickBooks, or Sage, VOGSY ledger accounts must be mapped to their corresponding accounts in your external accounting software. This mapping ensures that transactions are correctly categorized in both platforms when financial data is synchronized between VOGSY and your accounting system, maintaining consistency and accuracy in your overall financial records.