Quickbooks software comes with various great features that allow you to manage your business financial operations in a more effective way out. The Quickbooks Chart of Accounts is one of the features of Quickbooks software. It is a list of accounts that determines the liabilities, equity amount, balance in your account. One can say the Chart of accounts contains the list of all the accounts and the balance of your company. With this software, you can track the actual balance in your account, The Quickbooks Chart of accounts keeps all the information about your payments and transactions that helps you to keep a track of the cash flow in your business. Hence it plays as one of the important roles in your accounting system and to make the best use out of it. You must have the knowledge about its features and functionalities.
In order to Set up the Quickbooks Charts of accounts, we have mentioned below the steps you can follow. but before that let us have a look at different types of accounts you will get here.
Quickbooks Chart Of Accounts Types
Here is the list of accounts you will get with Chart of accounts that will offer great functionality to manage your business error and hassle-free.
- Asset Accounts-These types of accounts will contain the details of all the assets you have bought. The list of assets will include the land, inventory, equipment, valuables, vehicles, etc. even you can also keep the value of depreciation of the asset along with for what value you have purchased it. Along with this, here you will also get to check accounts and details of other bank accounts.
- Liability Accounts: these types of accounts will hold information about payroll taxes, Mortgages, Bank Loans, Personal Loans, Income tax, etc. hence these accounts will contain all your transactions.
- Income Accounts: These accounts will contain things like expense, cost of sales, revenues, etc.. however in some business you can use the same accounts to handle all the operations while there are some accounts that can be used in specific business types. even there are some ways through which you can easily generate incomes while some methods are really complex.
- Expense Accounts: In this Account, you will get the information about all the money you have spent to sell and buy good for your business. here you can keep a track of all the cash that you have spent. Hence, Creating separate expense accounts for your business is a good way to manage.
After this, now let us have a look at how we can set up the charts of accounts. you can follow these steps and can learn about how you can use it.
Set Up Quickbooks Chart Of Accounts List
here we have given the way to Set up the Quickbooks Charts of Accounts list. Follow and learn how to manage your business efficiently.
- Select the list: here you will see the list of Quickbooks Charts of accounts on your screen. you need to select one of them.
- Account Button: Now click on the account button to show the menu available.
- Add Account: Now click on New from the account option to create a new account.
- Account types: After this, you have to select the account types. In the Quickbooks Chart of Accounts, you will get the following account types to choose from Loan, credit, Income, bank, Expense, and Equity. With the Quickbooks, you will also get accounts receivable, liability, income, expenses, accounts payable, etc. even it will help you to determine where is your data is going to be reported.
- Click on Continue and you will get one more screen on your windows to add an account. In this window, you will be able to see your account name under the financial statements. here you will be required to enter a different account name in the Account Name box.
- Now you will be required to select the subaccount and your parent account. After this, you have to name your parent account too.
- After this, if you have entered multiple currencies in Quickbooks then it will suggest customers, vendors, bank accounts, etc that don’t use the same currency.
- After this, you can enter the description of your account. It is Optional, Hence if you won’t fill it then it won’t affect the setting of Quickbooks chart of accounts. However, you don’t need to fill this as Quickbooks Automatically integrate the name from the financial statements.
- Add your credit card or account information in the next window.
- remember the tax-line by using the tax-line drop-down list while adding the bank account.
- after this click on Next to save the changes and to show the information about your new account on the window.
this way you can set up the charts of accounts list with Quickbooks. Even if you want to use the Quickbooks Desktop software on your Mac device then you can install Quickbooks Desktop on Mac using parallels.
we have explained above the various types of accounts and how you can configure for Quickbooks Charts of Accounts. if you have encountered any kind of Quickbooks Error then get assistance from experts at Quickbooks.