Edit the Chart of Accounts in Xero

The chart of accounts is the foundation of your financial recordkeeping in Xero. Think of it as a filing cabinet — each account type is a drawer, and each account code is a folder inside it.

Understanding Account Types

Xero's chart of accounts includes five account types:

• Revenue — money your business earns
• Expenses — money spent to produce goods or services
• Equity — what the owners fully own
• Liabilities — amounts owed to others
• Assets — tangible and intangible items of value

1. Open the Chart of Accounts

Click Accounting and select Advanced, then click Chart of accounts. Xero provides a default chart — review it and decide what you need to add, edit, or remove.

2. Add a New Account

To create an account (for example, to track contractor spending):

1. Click Add account.
2. Select the account type — this determines where the account appears in your reports.
3. Enter a unique account code, following the numbering convention used in the default chart.
4. Enter a short title and an optional description.
5. Xero suggests a default tax setting based on the account type — adjust if needed.
6. Enable any relevant options, then click Save.

3. Edit an Existing Account

Click on any account to drill into it, make your changes, and save.

4. Delete or Archive Accounts

To remove accounts you won't use:

1. Tick the checkbox next to the account.
2. Click Delete.

If the account has transactions coded to it, Xero will archive it instead of deleting it. Archived accounts remain in your history but won't appear in dropdowns.

5. Import a Chart of Accounts

If you're migrating from another accounting system, you can import your existing chart of accounts directly into Xero rather than recreating it manually.