A list of all of the accounts of a user in QuickBooks is called ‘The chart of accounts. The software automatically keeps your account organized in a chart based on your business entities. This customized chart is very helpful at the time of filing taxes. Users can add as many accounts as they want to track.
The primary account types in a standard chart of accounts are:
- Asset accounts: It is an account that holds a record for purchases of tangible things like vehicles, buildings, tools and other assets used for business.
- Liability accounts: An account that records money that you owe but have not paid yet, for example loans, lines of credit, mortgages
- Income accounts: Normal day-to-day payments and transactions such as sales and collected revenues or income of rendered services.
- Expense accounts: Expenses or transactions that you have spent on normal business operations, such as office supplies, rent, advertisements.
How to set up a Chart of Accounts in QuickBooks
Step 1: Select the Lists
- Select the chart of accounts displayed on the screen .
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