Xero Chart of Accounts: Add, Edit, Import and Lock Accounts

Here's the trap in the import. Xero updates your accounts exactly as the file says, so any account you leave out of the file is archived or deleted when you import it. And if you change both the Code and the Name of an account in the same file, Xero archives the old account and creates a new one. Change one field, import, then change the other.

Viewing the chart of accounts

You need the standard or administrator user role to see it. From the list you can click an account for its details, click a balance to see the transactions behind it, export or print the chart, and use the tabs to filter by type, such as assets or liabilities. If you want the theory behind it, here's my plain guide to what a general ledger is.

The parts of every Xero account

Component	The rules, as of October 2026
Code	Up to 10 characters and unique; used to group accounts and to group them automatically in reports
Name	Required, up to 150 characters
Description	Optional, up to 1000 characters; bank accounts shouldn't have one
Type	Decides where the account appears in your financial reports
Tax rate	A default rate that sets how transactions are treated for sales tax
YTD	Year to date from the start of your financial year for revenue and expense; as at today for assets, liabilities and equity

Changing a code moves the old data under the new code for all new reports, but published reports don't change. Check whether your accountant or bookkeeper has a preferred set of codes before you start renumbering.

Account types and the duplicates Xero treats as one

Account types sit in five categories: assets, liabilities, expenses, equity and revenue. Some are used for specific jobs. Code a purchase to a Fixed Assets account and Xero adds it to the fixed asset register as a draft asset. Three pairs look different but work the same way: Liability and Non-current Liability, Expense and Overhead, and Revenue and Sales. You can choose either in each pair. One hard rule: you can't change an existing account's type to Inventory. You need a new account with that type, so your inventory asset account matches the inventory reports.

How to add or edit an account in Xero

1. In the Accounting menu, select Chart of accounts.
2. Click Add Account, or click the name of the account you want to edit.
3. Enter or change the code, name, type, description and tax rate.
4. Optionally tick Show on Dashboard Watchlist, Show in Expense Claims or Enable payments to this account.
5. Click Save.

Xero recommends having no more than 699 accounts, because more can affect performance. The Show in Expense Claims box only affects classic expense claims, not new expenses.

Archiving versus deleting an account

You can't delete an account that's ever been used in a transaction, even if you later changed the transaction's account or removed the transaction altogether. Archive it instead. Archiving doesn't affect existing transactions or your ability to report on the account, and you can restore it from the Archive tab at any time. The All tab only shows active accounts, which is why archived ones seem to vanish.

Locked and system accounts

A padlock next to the code means an account is locked, and hovering over it tells you why. Xero locks accounts used for a repeating invoice, bill or journal, a bank rule, tracked inventory, a registered fixed asset, or a payment service. Locked accounts can't be deleted or archived, but users with the standard or administrator role can edit them.

System accounts are set by Xero and can't be unlocked, deleted or archived. Some accept manual entries and some don't:

System account	Allows transactions or manual journals
Accounts Payable, Accounts Receivable	No, but you can record movements another way
Retained Earnings, Rounding, Sales Tax	Yes
Historical Adjustments, Realised Currency Gains	Yes
Current Earnings, Bank Revaluation, Tracking Transfers	No
Unpaid Expense Claims, Unrealised Currency Gains	No

To journal to a system account that won't take entries, an administrator adds a secondary account of the same type, such as a current asset account for accounts receivable, posts the manual journal there and groups the two in a custom Balance Sheet layout. Xero suggests talking to your accountant first.

Changing the tax rate on an account

Select the account or accounts, click Change Tax Rate, pick the new rate and click Save. The new rate only applies to new transactions; existing ones keep their old rate. If your sales tax basis was set to None, accounts in the default chart have no tax rate applied and transactions show No Tax, so you'll need to edit them if tax applies to you later.

Importing a chart of accounts: the rules

Download the template from Chart of accounts, then Import, then the example file link. Before you upload, check these:

1. The file holds a maximum of 1000 rows including the header, so more than 999 accounts means adding the rest by hand.
2. Balances in the file import as conversion balances and overwrite existing ones; leave the Balance column blank if you're unsure.
3. You can't import balances in other currencies, only your base currency.
4. Tax rates in the file that don't exist in Xero default to Tax Exempt.
5. Excel strips leading zeros from account codes, so format the Code column as text.
6. Xero uses one accounts receivable and one accounts payable control account, so merge any extras.
7. A locked account can't be updated by import; Xero creates a new account instead.

The Import Summary shows new, updated and excluded accounts before you confirm, with a line number for each error. Once your accounts are in, a trial balance is a sensible first check that everything adds up.

My verdict on the Xero chart of accounts

I'd keep Xero's default chart and add to it if you're a small business starting out, because it's already wired into the reports. Import your own only if your accountant hands you a ready-made file, and always import a full export with your changes rather than a partial list. Skip renumbering codes and renaming accounts in the same pass; do them separately so nothing gets archived by surprise.

A tidy chart of accounts is what makes automated bookkeeping and reporting reliable, so it's worth the hour it takes. I run AI training and workshops for teams, and help businesses with AI enablement and workflow automation, so the busywork runs itself and people get time back. Most of that work is with SaaS marketing teams and small businesses. Here's how we can work together.

Frequently asked questions

How long can a Xero account code be?

Up to 10 characters, and each code must be unique. Account names can be up to 150 characters.

Why can't I delete an account in Xero?

You can't delete an account that's been used in a transaction, or any locked or system account. Archive it instead; archived accounts can be restored at any time.

How many accounts can I import into Xero?

A file can hold up to 1000 rows including the header. Xero recommends no more than 699 accounts per organisation to avoid slowness.

Does changing an account's tax rate in Xero affect old transactions?

No. The new tax rate only applies to new transactions in that account.

Can I change an account type to Inventory in Xero?

No. Set up a new account and choose Inventory as the account type.