---
title: Which account does this go to?
summary: The five buckets, a decision flow for picking the right account, and the 10 transactions a small business sees most.
order: 3
---

# Which account does this go to?

## The five buckets

Every transaction in your books touches one or more of
**five account types**. Memorize these five and you'll
make the right call most of the time.

| Bucket | What's in it |
| --- | --- |
| **Asset** | Things you own that have value. Cash, AR, equipment. |
| **Liability** | Things you owe. AP, credit card balance, loans. |
| **Equity** | The owner's stake. Initial capital, retained earnings, owner draws. |
| **Revenue** | Money you earned by selling your product / service. |
| **Expense** | What it cost to run the business — rent, salaries, software. |

## The decision flow

Ask yourself, in order:

1. **Did money come in from a customer?** → Revenue (and
   the cash / AR side is an Asset).
2. **Did money go out to run the business?** → Expense
   (and the cash / AP side is a Liability or Asset).
3. **Did the business receive a loan?** → Liability (and
   the cash side is an Asset).
4. **Did the owner put money in?** → Equity (and the cash
   side is an Asset).
5. **Did the owner take money out?** → Equity (specifically
   Owner Draw) (and the cash side is an Asset).
6. **Did you buy something that lasts (equipment,
   property)?** → Asset (and the cash side is a different
   Asset, or a Liability if financed).

## The 10 transactions a small business sees most

| What happened | Debit | Credit |
| --- | --- | --- |
| You made a sale (paid at point of sale) | Cash (Asset) | Revenue |
| You sent an invoice (paid later) | AR (Asset) | Revenue |
| Customer paid an invoice | Cash (Asset) | AR (Asset) |
| You paid a bill in cash | Expense | Cash (Asset) |
| You received a bill (not paid yet) | Expense | AP (Liability) |
| You paid down a bill | AP (Liability) | Cash (Asset) |
| Customer refund | Revenue (negative) | Cash (Asset) |
| You took a loan | Cash (Asset) | Loan Payable (Liability) |
| You took owner draw | Owner Draw (Equity) | Cash (Asset) |
| You put money into the business | Cash (Asset) | Owner Contribution (Equity) |

For the full account list your books seeded with, see
[Yoke Ledger Chart of Accounts](/docs/yoke-ledger/chart-of-accounts).

## When you're not sure

Use the "ask my CPA" pattern: copy the transaction
details into the email template on
[Send to my CPA](/docs/accounting/for-business-owners/send-to-my-cpa)
and ask. Getting it right matters more than getting it
fast.