Setting Up Chart Of Accounts In Quickbooks Desktop
Quickbooks Desktop is one of the most popular accounting software used by small and medium-sized businesses. One of the first things you need to do when setting up Quickbooks Desktop is to create a chart of accounts. A chart of accounts is a list of all the accounts used by your business to record financial transactions. In this article, we will guide you on how to set up a chart of accounts in Quickbooks Desktop.
Step 1: Open Quickbooks Desktop
The first step is to open Quickbooks Desktop. Once you have launched the software, you should see the "Home" screen. From here, you can start setting up your chart of accounts.
Step 2: Go to the Chart of Accounts
Next, you need to go to the chart of accounts. To do this, click on "Lists" from the top menu and select "Chart of Accounts" from the drop-down menu.
Step 3: Add an Account
To add an account, click on the "New Account" button located at the bottom of the screen. This will open a new window where you can enter the details of the account you want to add.
Step 4: Choose Account Type
Choose the account type that best describes the account you want to add. Quickbooks Desktop offers a variety of account types such as bank accounts, credit card accounts, expense accounts, income accounts, and more.
Step 5: Name the Account
Enter a name for the account you want to add. This name should be descriptive and unique so that you can easily identify the account in the future.
Step 6: Enter Account Details
Enter the details of the account such as the account number, description, and opening balance. If you don't have an opening balance, you can leave this field blank.
Step 7: Save the Account
Once you have entered all the details of the account, click on the "Save & Close" button. This will save the account and add it to your chart of accounts.
Step 8: Add More Accounts
You can repeat the above steps to add more accounts to your chart of accounts. Make sure to choose the correct account type and enter all the necessary details for each account.
Step 9: Edit Accounts
If you need to edit an account, you can do so by selecting the account from the chart of accounts and clicking on the "Edit" button. This will allow you to make changes to the account details.
Step 10: Delete Accounts
If you need to delete an account, you can do so by selecting the account from the chart of accounts and clicking on the "Delete" button. Keep in mind that deleting an account will also delete all the transactions associated with that account.
Conclusion
Setting up a chart of accounts in Quickbooks Desktop is an important step in managing your business finances. By following the steps outlined in this article, you can create a chart of accounts that accurately reflects your business transactions. Remember to regularly review and update your chart of accounts to ensure that it remains relevant and up-to-date.