cancel
Showing results for 
Search instead for 
Did you mean: 
Content Leader

Rhonda Rosand Says: "Keep Your Chart of Accounts Simple"

chart_of_accounts.png

  

 

All of your accounts in QuickBooks are organized in the Chart of Accounts.

 

According to CPA and Advanced Certified QuickBooks Pro Advisor Rhonda Rosand (@RhondaRosandCPA) of New Business Directions, the Chart of Accounts is the “foundation and infrastructure of everything that is built for you in QuickBooks,” from financial reports to revenue plans.

 

Rhonda believes it’s imperative to keep your Chart of Accounts short and simple. In the end, making your accounting data easy to comprehend means you can quickly and accurately assess (and act on) your business’ financial position. This ultimately enables you to make smart, informed decisions.

 

The Chart of Accounts is complicated territory - only confident QuickBooks users should venture under the hood to make adjustments. However, every user should have a basic understanding of what the Chart of Accounts is and how it organizes your finances.

 

In the video below, Rhonda offers a compelling argument and an excellent overview of the main categories in the Chart of Accounts. Without further ado, let’s hear from the expert herself:

 

 

 

Remember Rhonda’s key points:

  • Don’t bloat your Chart of Accounts with too many accounts (0:51)

  • Fewer accounts means shorter reports - aim for a 1 page Balance Sheet and a 2 page Profit and Loss Report – (0:55).

  • Remember the three account main categories when you’re creating new accounts: assets, liabilities & equity, and revenue & expenses (1:15)


Rhonda Video Accounts.PNG

Special thanks to Rhonda Rosand for the awesome content! Check out her new YouTube Channel for more QuickBooks and accounting tips. 

  


  

Reach out

What do you find most challenging about organizing your accounts?

 

If you’re having trouble with your Chart of Accounts, work with your accountant (they are pros!) or find a local Pro Advisor.

3 Comments
Established Community Backer ***

Re: Rhonda Says: Keep Your Chart of Accounts Simple

Hi,

This is a very useful and easy to understand presentation.

Content Leader

Re: Rhonda Says: Keep Your Chart of Accounts Simple

@Sangeethmathew, I will let her know Smiley Happy

Established Member

Re: Rhonda Rosand Says: "Keep Your Chart of Accounts Simple"

Thank you so much for this presentation!! Very helpful and informative and clarified a few questions I had.