The books: accounts, journals and closing

Every invoice, bill, payment and bank transaction you record is posted to your books automatically. Books shows them and lets an accountant adjust them.

• Chart of accounts — the categories your money is recorded under.
• Journal entries — “Post a journal entry” for an adjustment made by hand.
• Starting balances — where your books began.
• Closing the books — “Close the books through this date” stops anything being changed before it.

Which account something belongs in, and how it is taxed, is a question for your accountant.