Step 4: Set Up Accounts

Before recording your first transaction, you need to understand and optionally customize your Chart of Accounts (COA). The COA is the foundation of double-entry accounting — it defines where money comes from and where it goes.

Good news! OpenBook automatically creates a default Chart of Accounts when you create a Legal Entity. For most DAOs, you just need to verify the accounts exist — no manual setup required.

Understanding the Chart of Accounts

The Chart of Accounts organizes your finances into five main categories:

Type	Code Range	What It Tracks	Examples
Assets	1xxx	What you own	Cash, Bank, Receivables
Liabilities	2xxx	What you owe	Payables, Tax Payable
Equity	3xxx	Owner’s stake	Owner’s Capital, Retained Earnings
Revenue	4xxx	Money coming in	Service Revenue, Product Sales
Expenses	5xxx-6xxx	Money going out	Rent, Utilities, Subscriptions

Key Accounts for Service DAOs

For service DAOs like Zenland, you’ll primarily use these accounts:

Assets (Where Money Is)

Account Code	Account Name	Purpose
1010	Cash on Hand	Physical cash (if any)
1020	Bank Account	Money in bank accounts
1030	Owner’s Personal Account	Money received to owner’s personal account

Early-stage DAO tip: If your DAO doesn’t have a dedicated bank account yet and you’re receiving payments to your personal account, create an account called “Owner’s Personal Account” or “Due from Owner” to track these funds.

Revenue (Where Money Comes From)

Account Code	Account Name	Purpose
4010	Service Revenue	Subscription fees, consulting income
4020	Product Sales	Physical/digital product sales

Equity (Owner’s Contributions)

Account Code	Account Name	Purpose
3000	Owner’s Capital	Owner’s contributions to the business
3100	Retained Earnings	Accumulated profits

Viewing Your Chart of Accounts

Navigate to Accounting

Go to Accounting → Chart of Accounts in the sidebar.

Review Accounts

You’ll see the default accounts organized by type:

Assets (1xxx)
Liabilities (2xxx)
Equity (3xxx)
Revenue (4xxx)
Expenses (5xxx-6xxx)

Verify Key Accounts Exist

For recording income, ensure you have:

At least one Asset account (Bank, Cash, or Owner’s Personal)
At least one Revenue account (Service Revenue)

Creating a Custom Account (Optional)

If you need an account that doesn’t exist, you can create one:

Click Add Account

In the Chart of Accounts, click + Add Account

Enter Account Details

Code: Follow the numbering convention (e.g., 1031 for a new asset)
Name: Descriptive name (e.g., “Owner’s Personal Card”)
Type: Select the category (Asset, Revenue, etc.)

Save

Click Create Account

Example: Zenland DAO Account Setup

For Zenland DAO’s first transaction (X Premium Membership - $48), we need:

Source Account (where the money is): Owner's Personal Card (Asset)
Revenue Account (income type): Service Revenue (Revenue)

Here’s what the entry will look like:

Transaction: X Premium Membership - 1 Year
Date: February 9, 2026

┌─────────────────────────────────────────┐
│ Account                 Debit   Credit  │
├─────────────────────────────────────────┤
│ Owner's Personal Card   $48.00          │
│ Service Revenue                 $48.00  │
├─────────────────────────────────────────┤
│ TOTAL                   $48.00  $48.00  │
└─────────────────────────────────────────┘

Double-Entry Explained:

Debit to Asset (Owner’s Personal Card) = Money came into the owner’s account
Credit to Revenue (Service Revenue) = We earned this income

Debits must always equal Credits — this is how OpenBook ensures your books balance.

Default Accounts Reference

Here are all the default accounts created for a new Legal Entity:

View All Default Accounts

Assets (1xxx)

Code	Name
1010	Cash on Hand
1020	Bank Account
1030	Accounts Receivable
1110	Inventory

Liabilities (2xxx)

Code	Name
2010	Accounts Payable
2020	Sales Tax Payable
2030	Wages Payable

Equity (3xxx)

Code	Name
3000	Owner’s Capital
3100	Retained Earnings

Revenue (4xxx)

Code	Name
4010	Service Revenue
4020	Product Sales
4110	Other Income

Expenses (5xxx-6xxx)

Code	Name
5010	Cost of Goods Sold
6010	Rent Expense
6020	Utilities Expense
6030	Wages Expense
6040	Marketing Expense
6050	Bank Fees
6060	Miscellaneous Expense

For Token Holders

The Chart of Accounts provides financial structure transparency:

See exactly how the DAO categorizes its finances
Verify that account types make sense for the business
Understand where money flows in reports

What’s Next?

Now that you understand your Chart of Accounts, you’re ready to record your first transaction!

Next: Record Income

Record your first subscription or service income

Documentation Index

​Understanding the Chart of Accounts

​Key Accounts for Service DAOs

​Assets (Where Money Is)

​Revenue (Where Money Comes From)

​Equity (Owner’s Contributions)

​Viewing Your Chart of Accounts

​Creating a Custom Account (Optional)

​Example: Zenland DAO Account Setup

​Default Accounts Reference

​Assets (1xxx)

​Liabilities (2xxx)

​Equity (3xxx)

​Revenue (4xxx)

​Expenses (5xxx-6xxx)

​For Token Holders

​What’s Next?

Next: Record Income

Understanding the Chart of Accounts

Key Accounts for Service DAOs

Assets (Where Money Is)

Revenue (Where Money Comes From)

Equity (Owner’s Contributions)

Viewing Your Chart of Accounts

Creating a Custom Account (Optional)

Example: Zenland DAO Account Setup

Default Accounts Reference

Assets (1xxx)

Liabilities (2xxx)

Equity (3xxx)

Revenue (4xxx)

Expenses (5xxx-6xxx)

For Token Holders

What’s Next?