diff --git a/post/account_type.php b/post/account_type.php
index 7c3fb256..07fc39bd 100644
--- a/post/account_type.php
+++ b/post/account_type.php
@@ -10,42 +10,7 @@ if (isset($_POST['add_account_type'])) {
     $type = intval($_POST['type']);
     $description = sanitizeInput($_POST['description']);
 
-    switch ($type) {
-        case 10:
-            $type_name = "Assets";
-            $result = mysqli_query($mysqli,"SELECT account_type_id FROM account_types");
-            $account_type_id = 10;
-            while ($row = mysqli_fetch_array($result)) {
-                if ($row['account_type_id'] == $account_type_id) {
-                    $account_type_id++;
-                }
-            }
-            mysqli_query($mysqli,"INSERT INTO account_types SET account_type_id = $account_type_id, account_type_name = '$name', account_type_description = '$description'");
-            break;
-        case 20:
-            $type_name = "Liabilities";
-            $result = mysqli_query($mysqli,"SELECT account_type_id FROM account_types");
-            $account_type_id = 20;
-            while ($row = mysqli_fetch_array($result)) {
-                if ($row['account_type_id'] == $account_type_id) {
-                    $account_type_id++;
-                }
-            }
-            mysqli_query($mysqli,"INSERT INTO account_types SET account_type_id = $account_type_id, account_type_name = '$name', account_type_description = '$description'");
-            break;
-        case 30:
-            $type_name = "Equity";
-            $result = mysqli_query($mysqli,"SELECT account_type_id FROM account_types");
-            $account_type_id = 30;
-            while ($row = mysqli_fetch_array($result)) {
-                if ($row['account_type_id'] == $account_type_id) {
-                    $account_type_id++;
-                }
-            }
-            mysqli_query($mysqli,"INSERT INTO account_types SET account_type_id = $account_type_id, account_type_name = '$name', account_type_description = '$description'");
-            break;
-    }
-
+    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_parent = $type, account_type_name = '$name', account_type_description = '$description'");
 
     //Logging
     mysqli_query($mysqli,"INSERT INTO logs SET log_type = 'Account Type', log_action = 'Create', log_description = '$name', log_ip = '$session_ip', log_user_agent = '$session_user_agent', log_user_id = $session_user_id");
@@ -60,9 +25,10 @@ if (isset($_POST['edit_account_type'])) {
 
     $account_type_id = intval($_POST['account_type_id']);
     $name = sanitizeInput($_POST['name']);
+    $type = intval($_POST['type']);
     $description = sanitizeInput($_POST['description']);
 
-    mysqli_query($mysqli,"UPDATE account_types SET account_type_name = '$name', account_type_description = '$description' WHERE account_type_id = $account_type_id");
+    mysqli_query($mysqli,"UPDATE account_types SET account_type_parent = $type, account_type_name = '$name', account_type_description = '$description' WHERE account_type_id = $account_type_id");
 
     //Logging
     mysqli_query($mysqli,"INSERT INTO logs SET log_type = 'Account Type', log_action = 'Edit', log_description = '$name', log_ip = '$session_ip', log_user_agent = '$session_user_agent', log_user_id = $session_user_id");
diff --git a/settings_account_types.php b/settings_account_types.php
index 69674c37..b9eeb25f 100644
--- a/settings_account_types.php
+++ b/settings_account_types.php
@@ -9,36 +9,28 @@ if (isset($_GET['account_type'])) {
     $account_type = sanitizeInput($_GET['account_type']);
     switch ($account_type) {
         case "Assets":
-            $account_type_id_min = "10";
-            $account_type_id_max = "19";
+            $account_type_parent = "1";
             break;
         case "Liabilities":
-            $account_type_id_min = "20";
-            $account_type_id_max = "29";
+            $account_type_parent = "2";
             break;
         case "Equity":
-            $account_type_id_min = "30";
-            $account_type_id_max = "39";
+            $account_type_parent = "3";
             break;
         default:
-            $account_type_id_min = "10";
-            $account_type_id_max = "39";
+            $account_type_parent = "1";
     }
 } else {
-    $account_type_id_min = "10";
-    $account_type_id_max = "39";
+    $account_type_parent = "%";
 }
 
-
-
 $sql = mysqli_query(
     $mysqli,
     "SELECT * FROM account_types
     WHERE account_type_$archive_query
-    AND account_type_id >= $account_type_id_min
-    AND account_type_id <= $account_type_id_max
-    AND (account_type_name LIKE '%$q%' OR account_type_description LIKE '%$q%' OR account_type_id LIKE '%$q%')
-    ORDER BY $sort $order"
+    AND account_type_parent LIKE '$account_type_parent'
+    AND (account_type_name LIKE '%$q%' OR account_type_description LIKE '%$q%')
+    ORDER BY account_type_parent ASC, $sort $order"
 );
 
 $num_rows = mysqli_num_rows($sql);
@@ -49,8 +41,9 @@ $num_rows = mysqli_num_rows($sql);
     <div class="card-header py-3">
         <h3 class="card-title"><i class="fas fa-fw fa-money-bill-wave mr-2"></i>Finance Account Types</h3>
         <div class="card-tools">
-            <button type="button" class="btn btn-primary" data-toggle="modal" data-target="#addAccountTypeModal"><i
-                    class="fas fa-plus mr-2"></i>Create Account Type</button>
+            <button type="button" class="btn btn-primary" data-toggle="modal" data-target="#addAccountTypeModal">
+                <i class="fas fa-plus mr-2"></i>Create Account Type
+            </button>
         </div>
     </div>
     <div class="card-body">
@@ -102,7 +95,7 @@ $num_rows = mysqli_num_rows($sql);
             <table class="table table-striped table-borderless table-hover">
                 <thead>
                     <tr>
-                        <th>Account Type ID</th>
+                        <th>Account Type Parent</th>
                         <th>Account Type Name</th>
                         <th>Description</th>
                         <th></th>
@@ -112,14 +105,22 @@ $num_rows = mysqli_num_rows($sql);
                     <?php
 
                     while ($row = mysqli_fetch_array($sql)) {
-                        $account_type_id = nullable_htmlentities($row['account_type_id']);
+                        $account_type_id = intval($row['account_type_id']);
+                        $account_type_parent = intval($row['account_type_parent']);
+                        if($account_type_parent == 1) {
+                            $account_type_parent_name = "Assets";
+                        } elseif($account_type_parent == 2) {
+                            $account_type_parent_name = "Liabilities";
+                        } else {
+                            $account_type_parent_name = "Equity";
+                        }
                         $account_type_name = nullable_htmlentities($row['account_type_name']);
                         $account_type_description = nullable_htmlentities($row['account_type_description']);
                         ?>
                         <tr>
                             <td><a class="text-dark text-bold" href="#" data-toggle="modal"
                                     data-target="#editAccountTypeModal<?php echo $account_type_id; ?>">
-                                    <?php echo $account_type_id; ?>
+                                    <?php echo $account_type_parent_name; ?>
                                 </a></td>
                             <td>
                                 <?php echo $account_type_name; ?>
diff --git a/settings_account_types_add_modal.php b/settings_account_types_add_modal.php
index 141c25e0..7afd7645 100644
--- a/settings_account_types_add_modal.php
+++ b/settings_account_types_add_modal.php
@@ -15,19 +15,11 @@
                     </div>
                     <div class="form-group">
                         <label>Account Type</label>
-                        <select class="form-control select2" name="type">
-                            <option value=""<?php if ($account_type == NULL)
-                                echo ' selected';
-                            ?>>- Select -</option>
-                            <option value="10"<?php if ($account_type == 'Assets')
-                                echo ' selected';
-                            ?>>Assets</option>
-                            <option value="20"<?php if ($account_type == 'Liabilities')
-                                echo ' selected';
-                            ?>>Liabilities</option>
-                            <option value="30"<?php if ($account_type == 'Equity')
-                                echo ' selected';
-                            ?>>Equity</option>
+                        <select class="form-control select2" name="type" required> 
+                            <option value="" <?php if ($account_type == NULL) echo "selected"; ?>>- Select -</option>
+                            <option value="1" <?php if ($account_type == 'Assets') echo "selected"; ?>>Assets</option>
+                            <option value="2" <?php if ($account_type == 'Liabilities') echo "selected"; ?>>Liabilities</option>
+                            <option value="3" <?php if ($account_type == 'Equity') echo "selected"; ?>>Equity</option>
                         </select>
                     </div>
                     <div class="form-group">
diff --git a/settings_account_types_edit_modal.php b/settings_account_types_edit_modal.php
index a82b2081..486a08e1 100644
--- a/settings_account_types_edit_modal.php
+++ b/settings_account_types_edit_modal.php
@@ -11,16 +11,20 @@
                 <input type="hidden" name="account_type_id" value="<?php echo $account_type_id; ?>">
                 <div class="modal-body bg-white">
 
-                    <div>
-                        <label>Type Group</label>
-                        <input type="text" class="form-control" name="type_group" value="<?php echo $account_type; ?>" readonly>
-
-                    </div>
                     <div class="form-group">
                         <label>Name <strong class="text-danger">*</strong></label>
                         <input type="text" class="form-control" name="name" value="<?php echo $account_type_name; ?>" required>
                     </div>
 
+                    <div class="form-group">
+                        <label>Account Type</label>
+                        <select class="form-control select2" name="type" required>
+                            <option value="1" <?php if ($account_parent == 1) echo 'selected'; ?>>Assets</option>
+                            <option value="2" <?php if ($account_parent == 2) echo 'selected'; ?>>Liabilities</option>
+                            <option value="3" <?php if ($account_parent == 3) echo 'selected'; ?>>Equity</option>
+                        </select>
+                    </div>
+
                     <div class="form-group">
                         <label>Description</label>
                         <textarea class="form-control" name="description" placeholder="Description"><?php echo $account_type_description; ?></textarea>
diff --git a/setup.php b/setup.php
index 45878280..65c22f05 100644
--- a/setup.php
+++ b/setup.php
@@ -249,17 +249,17 @@ if (isset($_POST['add_company_settings'])) {
     mysqli_query($mysqli,"INSERT INTO accounts SET account_name = 'Cash', account_type = '11', account_currency_code = '$currency_code'");
 
     //Create Main Account Types
-    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Asset', account_type_id= '10', account_type_description = 'Assets are economic resources which are expected to benefit the business in the future.'");
-    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Liability', account_type_id= '20', account_type_description = 'Liabilities are obligations of the business entity. They are usually classified as current liabilities (due within one year or less) and long-term liabilities (due after one year).'");
-    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Equity', account_type_id= '30', account_type_description = 'Equity represents the owners stake in the business after liabilities have been deducted.'");
+    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Asset', account_type_parent = 1, account_type_description = 'Assets are economic resources which are expected to benefit the business in the future.'");
+    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Liability', account_type_parent = 2, account_type_description = 'Liabilities are obligations of the business entity. They are usually classified as current liabilities (due within one year or less) and long-term liabilities (due after one year).'");
+    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Equity', account_type_parent= 3, account_type_description = 'Equity represents the owners stake in the business after liabilities have been deducted.'");
     //Create Secondary Account Types
-    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Current Asset', account_type_id= '11', account_type_description = 'Current assets are expected to be consumed within one year or less.'");
-    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Fixed Asset', account_type_id= '12', account_type_description = 'Fixed assets are expected to benefit the business for more than one year.'");
-    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Other Asset', account_type_id= '19', account_type_description = 'Other assets are assets that do not fit into any of the other asset categories.'");
+    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Current Asset', account_type_parent = 1, account_type_description = 'Current assets are expected to be consumed within one year or less.'");
+    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Fixed Asset', account_type_parent = 1, account_type_description = 'Fixed assets are expected to benefit the business for more than one year.'");
+    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Other Asset', account_type_parent = 1, account_type_description = 'Other assets are assets that do not fit into any of the other asset categories.'");
 
-    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Current Liability', account_type_id= '21', account_type_description = 'Current liabilities are expected to be paid within one year or less.'");
-    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Long Term Liability', account_type_id= '22', account_type_description = 'Long term liabilities are expected to be paid after one year.'");
-    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Other Liability', account_type_id= '29', account_type_description = 'Other liabilities are liabilities that do not fit into any of the other liability categories.'");
+    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Current Liability', account_type_parent = 2, account_type_description = 'Current liabilities are expected to be paid within one year or less.'");
+    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Long Term Liability', account_type_parent = 2, account_type_description = 'Long term liabilities are expected to be paid after one year.'");
+    mysqli_query($mysqli,"INSERT INTO account_types SET account_type_name = 'Other Liability', account_type_parent = 2, account_type_description = 'Other liabilities are liabilities that do not fit into any of the other liability categories.'");
 
     //Create Categories
     mysqli_query($mysqli,"INSERT INTO categories SET category_name = 'Office Supplies', category_type = 'Expense', category_color = 'blue'");