A chart of Accounts in QuickBooks is basically a list of accounts that usually helps in categorizing assets, owner’s equity amount, liabilities, and income. It is basically a list of balances that further helps in understanding the amount of money a company has, how much it earns, and owes & owns. In simple words, a chart of accounts is a foolproof financial report.
It is majorly categorized into four standard accounts namely: Asset accounts, liability accounts, income accounts, and expense accounts. One can easily set up a chart of accounts in QuickBooks using some simple steps that we will be elaborating later in this blog. To learn further about chart of accounts and the procedure to set it up, make sure to read this piece of writing carefully, or you can also get on a call with our technical support professionals at,+1- 844-405-0907, and they will help you with the process further.
Steps to set up a chart of accounts in QuickBooks
You can try performing the below stated steps to successfully set up chart of accounts in QuickBooks:
Step 1: Move to lists- Charts of accounts command
Step 2: Select the Account tab
- Account menu will appear on the screen, you need to click on the tab, which will open the Account menu option new on the screen.
- You will find add new account window open on the screen, where you need to click on new to add a new account.
- There are different account types available; you can find the location where the data is getting reported through this tab.
- Click on continue will show the second add account window on the computer screen. It should be noted that the same name of the account will appear in the financial statements.
- Make use of the account name box to assign a name to the new account.
- Select sub-account in the checkbox, and give a name to the parent account.
- If QuickBooks finds out that the user is working in different currencies, then it will prompt the users to look for the customers, bank accounts, vendors, etc. using different currencies.
Step 9: Get the Account Info
Step 10: On the corporation’s tax return, identify the tax line
Step 11: Save new account
- You need to click on next tab to save the account information.
- And then move to add new account window.
- After both account has been set up, new accounts will appear on the chart of accounts lists.