A Chart of Accounts is a complete listing of each account in a business's accounting system. An account is a unique record that defines each type of financial transaction and is used to organize the business's finances. An account is a separate record for each type of asset, liability, equity, revenue, and expense. Each financial transaction is assigned to a specific account, and the individual accounts together make up the Chart of Accounts.
The Chart of Accounts is the foundation for a business's financial accounting system. It is used for recording transactions in the general ledger in order to provide a better understanding of the financial health of the business and to help the business comply with financial reporting standards. In other words, the Chart of Accounts is listing of all the individual accounts in the General Ledger that are used to organize your financial transactions.
QuickBooks Online is # 1 in cloud accounting for small businesses1. It organizes your accounting data in one central location so that you can easily track every dollar coming into and going out of your business. With QuickBooks Online you can setup your business's Chart of Accounts in a few easy steps. It's also easy to access and edit your Chart of Accounts anytime, ensuring that you are always recording and organizing financial transactions accurately. Try QuickBooks Online for free and see how easy it is to organize and categorize your accounting data.
QuickBooks Online makes it easy to setup, access, and edit your Chart of Accounts
When you first setup QuickBooks Online, your answers to the Startup Interview questions will help QuickBooks choose a default Chart of Accounts for you, closely tailored to your business. To review the default Chart of Accounts created for you, simply go to Company > Chart of Accounts. From here you can edit, add, or delete accounts and you can even make sub-accounts. Each account must have a name, an account number, an account type (i.e. Expense or Bank), and a detail type (the detail type simply defines the account in more detail). You can access and edit your Chart of Accounts anytime and you can have as many accounts as you wish. Please note: if you would like to record and track transactions from more than one bank account, you will need QuickBooks Online Essentials or QuickBooks Online Plus.
The Chart of Accounts is much like a filing cabinet and is a way to organize each individual accounting transaction. For example, if you want to know how much money you spend on shipping, you can create an account called Shipping Expense. If you want to track international shipping specifically, you can make a sub-account inside Shipping Expense called International. Each time you record money coming into the business (income) or money going out of the business (expense), you will associate the transaction with an account listed in your Chart of Accounts. QuickBooks Online makes this easy by including a drop-down list of your accounts from the Chart of Accounts on each transaction screen. In just a few clicks you can categorize each financial transaction.
QuickBooks Online puts all of your accounting data at your fingertips and enables you to access and edit your data, including your Chart of Accounts, anytime and from anywhere. Always know where your business stands with QuickBooks Online.