Hello, welcome to QuickBooks For Beginners. Today we are going to discuss about Working with the chart of accounts on QuickBooks Pro. We are using QuickBooks Pro version 2016 on this tutorial. Please take a seat, grab a cup of tea or coffee and lets start with the tutorial.
The Chart of Accounts on QuickBooks Pro
When we created a new company on QuickBooks, we choose the industry that closely related to our business type. This is how QuickBooks chooses some default accounts where you can get started. But you can always change or add more accounts during the time. We are going to show you how to do that in this tutorial. Lets open QuickBooks Pro software, go ahead and double click Chart of Accounts.
Here we can see the list of starting accounts that we have in the company file that we created. These accounts are created so you can line up the transaction items such as deposits or expenses and match up with your business account.
These accounts lists show where QuickBooks is debiting or crediting. For example, if you make your credit card payment, your credit card account will be credited while the bank account that you use to pay that credit card bill will be debited the same amounts.
The Chart of Accounts is an easy to read the list of all the accounts that your company file uses in one place. You can see the account, the type of account, and the current balance in one easy to read place.
Possible Type of Accounts that you may have in a company:
- Fixed Asset Account
This type of account manage the items that you own such as furniture and equipment.
- Liability Account
It’s an account that holds money or liable items such as loans.
- Income Account
It contains transactions which pay you money toward your business.
- Equity Account
This is the account that holds information about the money that you put in toward your business.
- Expense Account
A type of account where you can keep track of things such as travel