04 Apr Creating or Updating Your QuickBooks Chart of Accounts
QuickBooks needs to be set up properly to work properly. If you don’t know what an asset or a liability are you will need to learn. There are dozens of options to learn, but one of the easiest is Kahn Academy. www.khanacademy.org/ can teach you about assets, cash v. accrual accounting, or how to read a cash flow statement.
Once you have learned what an asset is you then need to figure out what assets you have, and set them up in your chart of accounts.
1. Ctrl + A to open your chart of accounts in QuickBooks.
2. Check over the default chart of accounts or what you already have. What do you still need? Do you have one vehicle but need to add a new one? Did you buy a new computer and need to add the asset?
3. Ctrl + N to add a new account.
Create New Account
4. If you are adding an asset other than a bank account or a fixed asset more options can be found in the lower section under “other account types”.
Creating a Current Asset
5. Fill in your information.
6. Assign an account number if you are using account numbers.
7. Click Save and New.
You will repeat this for each new account you need to add. Assets, Liabilities, Equity, Income, Cost of Goods Sold and Expenses will then follow.
The number one thing people pay me to do is fix their QuickBooks file because the chart of accounts was never set up properly in the first place. Don’t be one of them. Lean a little about accounting and set yourself up for success.
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