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Account Codes and Numbering

Last updated on May 02, 2026

What an account code is

A short number attached to each account, like a label on a folder. The code is optional in BitBooks but most businesses use them.

1010   Cash on Hand
1110   BTC Hot Wallet
4010   Sales: Coffee
6010   Rent

The code goes before the name, sorts the accounts predictably, and signals what kind of account it is (because of the convention below).

The standard convention

This is used worldwide and built into most accounting tools:

First digit Type
1 Assets
2 Liabilities
3 Equity
4 Income
5 Cost of Sales
6, 7, 8 Operating Expenses
9 Other Income/Expense

So if you see an account starting with 4, you know it's Income. Starting with 6, it's Operating Expense. The convention isn't legally required, but following it makes your books readable to any accountant.

A four-digit pattern

Most businesses use four-digit codes:

  • First digit = type (per convention above)
  • Second digit = sub-category
  • Third and fourth digits = specific account

So in the Asset range (1xxx):

  • 10xx = Cash and Cash Equivalents
  • 11xx = Bitcoin and Crypto Wallets
  • 12xx = Accounts Receivable
  • 13xx = Inventory
  • 14xx = Other Current Assets
  • 15xx = Fixed Assets
  • 18xx = Other Assets

And specifically:

  • 1010 = Cash on Hand (the bank account)
  • 1020 = Petty Cash
  • 1110 = BTC Hot Wallet
  • 1115 = BTC Cold Storage
  • 1120 = ETH Wallet (if you held ETH)
  • 1200 = Accounts Receivable
  • 1500 = Office Equipment

Spaces between codes (1010, 1020, 1030 instead of 1010, 1011, 1012) leave room to insert new accounts later without renumbering.

Why codes help

  • Sorting. Accounts sort numerically, which groups similar accounts together. Without codes, accounts sort alphabetically and "Bank Account" comes before "Cash on Hand" comes before "Inventory" with no logical grouping.
  • Speed of recognition. Once you know the convention, you can identify an account's type from the code at a glance.
  • Reports. Some reports (especially General Ledger) display the code, which helps when you have similar names across types.
  • Accountant communication. External accountants often reference accounts by code: "post that to 6010, not 5010."

Setting codes in BitBooks

When creating or editing an account (Admin → Chart of Accounts), the Code field is just below Name. Type a number and save.

Codes have to be unique within an organization. You can't have two accounts both with code 1010.

Should you use codes?

If you're doing your own books and don't think numerically: maybe not. The names are enough.

If your accountant uses codes, your business will grow, or you have more than 30 accounts: yes, use codes. The investment in setting them up pays off the first time you have to scan through 60 accounts looking for one.

You can always add codes later. They're not required at account-creation time.

Migrating from QuickBooks

QuickBooks has a similar code convention. When you import from QuickBooks, your existing codes come over. You don't have to re-number anything.

If you set up accounts in BitBooks first without codes, then later decide to add them, you can edit each account and add a code. There's no bulk-edit yet, so for many accounts this is one-by-one work.

Common questions

"Do I have to follow the convention?"

No. You could use codes A1, A2, A3 if you wanted. But following the convention means anyone reading your books recognizes what's what immediately. Strong recommendation.

"What if I want a five-digit code?"

Fine. BitBooks doesn't restrict the length. Some businesses use five or six digits for finer hierarchy.

"Can two accounts have the same code in different organizations?"

Yes. Codes are unique per organization, not globally. Each organization has its own code namespace.

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