What must you do if you use a different chart of accounts than the Xero default?

When using a different chart of accounts than the default Xero chart, you need to create accounts that specifically align with your inventory items. This is crucial because the functionality within Xero relies heavily on the chart of accounts to categorize and correctly report financial transactions. Inventory accounts need to be set up to ensure that your financial statements accurately reflect your business's performance.

Creating accounts for inventory items allows for effective tracking of inventory costs and sales, which is vital for accurate financial reporting and management insights. Each business may have unique inventory needs, and customizing your chart of accounts to accommodate those needs ensures that your accounting practices can support decision-making based on precise financial data.

In contrast, simply importing the default chart may not fit your business's specific needs, deleting existing accounts would disrupt your historical data, and using only generic account names would lack the specificity required for effective financial tracking and reporting. By establishing specific accounts for inventory items, you enhance the integrity and usefulness of your financial records.