Each of these Financial Categories is further divided into Account Groups. These groups classify these Financial Categories further according to the nature of the transactions.

1. The account groups for the Financial Categories of the Income Statement
   
   

   FINANCIAL CATEGORY	REPORTING GROUPS FOR ACCOUNTS	DESCRIPTION	DR / CR
   NET PROFIT	RETAINED INCOME *	Is made when the Income received is more than the expenses incurred.	CREDIT
   / NET LOSS		Is made when the expenses incurred are more than the Income received.	DEBIT
   INCOME	INCOME OTHER INCOME	The money generated by the business entity by selling goods and or services.  The income generated usually not in the normal course of the specific business' activities	CREDIT
   EXPENSES	EXPENSES	Incurred in the normal business activities to generate income.	DEBIT

   
   *RETAINED INCOME – is the difference between your Income and Expenses and is transferred to the Retained Earnings Account on the Balance Sheet.
   
   Each Income / Expenses account type, which is created in a set of books in TurboCASH, should be assigned to an appropriate REPORTING GROUP and linked to a FINANCIAL CATEGORY in TurboCASH (INCOME or EXPENSES).
   
   The Financial Result influences the Financial Position, in other words the performance of the business over a specific financial period will increase the worth of the business or the owners / partners / members / shareholders / interest or equity in the business entity. A Net Profit will increase the value (Capital) of the business entity. A Net Loss on the other hand, will decrease the value (Capital) of the business entity.
   
   
2. The Account Groups for the Financial Categories of the Balance Sheet
   
   

   FINANCIAL CATEGORY	REPORTING GROUPS FOR ACCOUNTS	DESCRIPTION	DR / CR
   CAPITAL	CAPITAL MEMBERS' CONTRIBUTION SHARE CAPITAL	The value of the owners equity in the respective business entities. Sole Proprietor or Partnership Close Corporation Companies	CREDIT
   ASSETS	FIXED ASSETS CURRENT ASSETS	Those physical items with a value which will not be consumed in a financial year, e.g. Land and Buildings, Plant and Machinery, Motor Vehicles, Furniture and Fittings, Computers, etc. All amounts in the Bank, Petty Cash, owed to the business by Debtors, stock and prepaid expenses.	DEBIT
   LIABILITIES	LONG-TERM LIABILITIES CURRENT LIABILITIES	All amounts owed to third parties or financial obligations repayable normally more than one year. All amounts owed by the business to Creditors, Taxes payable, accounts payable and provisions for expenses.	CREDIT

   
   Each Balance Sheet account type, which is created in a set of books on TurboCASH, should be assigned to an appropriate REPORTING GROUP and linked to a FINANCIAL CATEGORY in TurboCASH (CAPITAL, ASSETS or LIABILITIES).

In TurboCASH, the Account Groups are linked to Financial Categories. Note that it is of utmost importance to have your groups set correctly and to link the groups to the correct financial categories. If you create or edit any accounts, you should make sure that the accounts are linked to the correct Financial Categories. Chart of Accounts if you create any, should also be linked to the correct Account Groups.