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Chapter 3
Creating a Company
68
2 Use the Calendar button to choose the start date of your first fiscal 
year in Peachtree.
3 Modify the dates of the fiscal periods, if necessary.
When you complete Create a New Company, your system date for Peacht-
ree will be the date of your computer. When you are ready to begin entering 
data, you will need to change the accounting period. For more information, 
see “Changing Accounting Periods” on page280
.
Once you finish New Company Setup, you won’t be able to 
change your accounting periods. Make sure you have these set 
correctly before you select the Finish button.
Finish Window
Congratulations! When you see this window, you’re done. Just click the 
Finish button, and Peachtree will create your new company. Of course, if 
you want to make any changes beforehand, you can always click the Back 
button to return to the appropriate Create a New Company wizard window.
Completing the Setup Process
Once you’ve gone through the Create a New Company Wizard, you’re 
ready to set up the remainder of your company and start using Peachtree. 
We recommend that you follow the order laid out in this book for setting up 
your company, beginning with your chart of accounts. Generally, you 
should set up defaults for a section of your company before you enter 
records. 
Ideally, you would enter all your records and their beginning balances prior 
to entering transactions but this is not practical, so Peachtree provides the 
Fast Add feature that helps you enter customer  records at the same time as 
you enter transactions. It’s important to remember, though, that your state-
ments and reports will not be complete or accurate until you have entered all 
records that have balances as of when you start using Peachtree. To make it 
If you want more information:
In the Help index, look up “Create a New Company wizard, fiscal year, 
monthly.”
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Setup Guide
69
easier for you to complete the setup of your company, Peachtree provides a 
Setup Guide that you can use. 
Setup Guide
The Setup Guide opens when you finish Create a New Company. You can 
re-open it at any time by selecting the Company option on the Navigation 
Bar, and then clicking the Setup Guide button under Company Tasks. Or 
you can re-open it by simply selecting File, then Setup Guide. This guide is 
designed to walk you through the process of completing new company 
setup. Because the Setup Guide assists you in entering all the information 
you need to set up your company, and in an orderly fashion, it can be a very 
useful feature (Note that in Peachtree First Accounting, you won’t see the 
Jobs link shown below). 
When you select one of the links to an area of the program, a second win-
dow opens. Follow the steps to set up that part of your company.
Click one of the links
to begin setting up
the parts of that area
of Peachtree.
Each link will open a
window with several
easy to follow steps
for setting up that
area of the program.
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Chapter 3
Creating a Company
70
You can close this win-
dow at any time by 
clicking the x in the top 
right.
To proceed to the next 
step, click Next.
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4
Setting Up Your
General Ledger
Overview
72
Selecting Account Types
74
Required Accounts
75
Numbering Accounts
76
Entering or Modifying Accounts
76
Beginning Balances or Prior-Period Adjustments 78
What If I’m Out of Balance?
79
Budget Information
80
Entering General Ledger Defaults
81
Account Segments
82
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72
✪ 
Setting Up Your General Ledger 
Organizing your chart of 
accounts is equivalent to 
organizing your business, 
because what you see on 
financial statements 
depends on what’s set up in 
your chart of accounts.
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73
Your chart of accounts is the underlying system for all the work you do in 
Peachtree. Each time you save (or post) a transaction, an entry is made to at 
least two accounts—a debit and a credit. In this time-honored way, you 
ensure that your books are always in balance.
Beginning Balances
During startup, you’ll enter begin-
ning balances for your general led-
ger accounts. Peachtree checks to 
make sure your beginning-balance 
entries balance—that the sum of 
assets and expenses equals the sum 
of liabilities, equity, and income. 
If you want more information:
In the Help index, look up “chart of accounts, setting up for the first time.”
Look up “account, beginning balances.” 
INITIAL DECISIONS
When you set up a company, you can select to either copy one of the 
Peachtree charts of accounts, to copy from another company, or to create 
your own. We recommend that you copy one of the many Peachtree charts of 
accounts. Because account names are often standardized in accounting, you will surely 
be able to save time by tweaking the Peachtree chart of accounts versus entering one 
from scratch.
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Chapter 4
Setting Up Your General Ledger
74
Selecting Account Types
Accounts in Peachtree are grouped by standard account types. The following 
table suggests the account type you should select for the particular account 
you are setting up:
At the end of the fiscal year, the balance amounts on the Income, Cost of 
Sales, Expenses, and Equity Gets Closed account types become zero. The 
net difference is added to the retained earnings account. You can only create 
one account using the Equity Retained Earnings account type. 
Account You Are Setting Up
Account Type to Select
Credit Card
Accounts Payable
Line of Credit
Accounts Payable
Bank, such as checking account
Cash
Asset
Other Current Assets, Fixed Assets, 
or Other Assets
Accounts Payable, such as 
accrued expenses
Accounts Payable
Income/Sales
Income
Expense, such as salary expense
Expense
Other Current Liabilities, such as 
short-term loans
Other Current Liabilities
Required Accounts in Peachtree
75
Required Accounts in Peachtree
Some accounts are used by the system in daily transactions. In all tasks 
except the General Journal, Peachtree performs some of the accounting dis-
tribution for you, based on accounts you establish in the default information 
(accessed through the Maintain menu or the setup checklist). The accounts 
required to use each feature of the Peachtree program are listed below: 
Accounts Receivable
Accounts Receivable (Accrual only)
Cash Received
Discounts Allowed
Sales Tax Payable
Interest Income (for Finance Charges)
Freight
Accounts Payable
Accounts Payable (Accrual only)
Cash Disbursed
Discounts Taken
Payroll
Cash Account
Salaries and Wages
All Deductions (Payable)
All Allowances (Expense)
General Ledger
Retained Earnings Rounding Account (for 
customized Financial Statements)
Inventory
Sales Revenue
Inventory
Cost of Goods Sold
If you want more information:
In the Help index, look up “account, necessary in Peachtree.”
Look up “account type.” 
Chapter 4
Setting Up Your General Ledger
76
Numbering Accounts
How you number your chart of accounts is up to you. However, you should 
establish a consistent, logical system that everyone who uses Peachtree can 
easily understand. In setting up a numbering system for your chart of 
accounts, you should be aware of the following:
Account numbers can contain any printable character except *, +, and ?.
Account numbers cannot contain leading or trailing spaces. Spaces in the 
middle are allowed.
Account numbers are not case sensitive (e.g., CASH and Cash would be 
the same account).
There is no rigid scheme for departments and 
sub-accounts. You can create your own number-
ing scheme in which an account number can 
consist of a main number combined with depart-
ment codes and/or sub-account codes. Most of 
the time account numbers containing these spe-
cial codes will not require any special treatment. 
However, at report-printing time, you will need 
to be aware of how you can use your own num-
bering system to generate departmental reports. 
Two other important points about coding your 
accounts:
Account numbers are sorted alphabetically 
and numbers will come before letters.
Only one account can use the Retained Earn-
ings account type.
Entering or Modifying Accounts
The Maintain Chart of Accounts window is used to add new accounts, 
including your bank accounts. You can modify the description of an existing 
account, delete an existing account, make an account inactive, or change the 
account type for an account.
CONCEPTS
Account Segments: 
In 
Peachtree Premium 
Accounting, you can 
use a feature named 
account segments to 
view totals by account 
for department, divi-
sion, or whatever sub-
grouping you require. 
See page82
.
Entering or Modifying Accounts
77
If you have an accountant, you should consult him or her before setting up 
your chart of accounts.
From the Maintain menu, select Chart of Accounts.
Setting Up Bank Accounts
Bank accounts are set up just like other 
Cash-type asset accounts. They should 
follow the numbering scheme of your chart 
of accounts. 
If you want more information:
In the Help index, look up “account, setting up for the first time.” 
Look up “account, adding new.” 
You can select or add another 
account ID here.
You can only view totals on this 
window. Select the Account 
Beginning Balances button to adjust 
balances.
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