chart of accounts

Carolexx · ‎September 25, 2024

I am trying to get my QuickBooks chart of accounts where the CPA and I want it. There are some accounts that I did not set up and these are "other" accounts. When I have "other" accounts and am audited by some of our government contracts, I have to define every transaction which is sometimes a lot. QuickBooks adds "other" to some of the accounts, and I can't seem to get that account out of there, it doesn't show up on the chart of accounts; it only shows up in the P&L , so it's quite annoying. I have gotten it out of some accounts, but I just can't get it to stop opening a new account. how do I get rid of these pesky "other" accounts that are automatically set up?

FishingForAnswers · ‎September 25, 2024

@Carolexx You've been unable to get rid of the 'Other' account because it's not a real account; it's a kind of 'meta' account, I suppose you would say.

Basically, whenever you have subaccounts in your chart of accounts, but assign a transaction to the parent account, it displays on the P&L as an 'Other' account.

One example of this would be if you set up a Supplies Expense account and then created Cleaning Supplies and Office Supplies.

If you were to assign Cleaning Supplies and Office Supplies as subaccounts of Supplies Expense, then Supplies Expense would become a Parent account.

If you were to then write a check and use Supplies Expense as the expense account, QuickBooks would still try to treat the transaction as part of a subaccount of Supplies Expense. But, since the Parent account Supplies Expense was selected directly, QuickBooks compromises by displaying the transaction under Supplies Expense - Other on your P&L.

To get this to stop happening, don't categorize your expenses directly under the Parent account; either use one of the existing subaccounts or, if none are quite correct for your needs, create a new subaccount that does fit your needs.

You will, of course, need to recategorize any existing transactions that are directly tied to the Parent expense on your Chart of Accounts. The P&L will give you a convenient subreport if you double-click on the amount tied to the -Other listings.

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CharleneMaeF · ‎September 25, 2024

Hi there, Carolexx.

I'm here to provide an overview of the accounts created by the QuickBooks Desktop (QBDT) system.

When you create your company file in QBDT, the system automatically generates specific default accounts in your Chart of Accounts. These accounts are determined based on the type of business entity you select during setup.

In addition to the default accounts, QuickBooks automatically adds special accounts when certain actions are made in the program (one example is when transferring credits, QuickBooks will create an Other Current Assets account) or if specific features are enabled in your settings. These accounts are typically labeled as "Other" in the Chart of Accounts.

It's important to note that these auto-generated accounts can't be modified or deleted. There are also instances that the system will make them inactive when not in use. This inactivity is why some accounts don't appear in your Chart of Accounts.

For further guidance on managing your Chart of Accounts, I recommend checking out the article: Adding, editing, or deleting accounts in QuickBooks Desktop. This resource provides valuable insights into organizing your accounts effectively.

Additionally, I've added these resources to help you review your accounts in QuickBooks to make sure they match your real-life bank and credit card statements:

Should you have further questions about keeping your Chart of accounts organized and accurate, please add a reply below. I'm always available to help you out.

FishingForAnswers · ‎September 25, 2024

@Carolexx You've been unable to get rid of the 'Other' account because it's not a real account; it's a kind of 'meta' account, I suppose you would say.

Basically, whenever you have subaccounts in your chart of accounts, but assign a transaction to the parent account, it displays on the P&L as an 'Other' account.

One example of this would be if you set up a Supplies Expense account and then created Cleaning Supplies and Office Supplies.

If you were to assign Cleaning Supplies and Office Supplies as subaccounts of Supplies Expense, then Supplies Expense would become a Parent account.

If you were to then write a check and use Supplies Expense as the expense account, QuickBooks would still try to treat the transaction as part of a subaccount of Supplies Expense. But, since the Parent account Supplies Expense was selected directly, QuickBooks compromises by displaying the transaction under Supplies Expense - Other on your P&L.

To get this to stop happening, don't categorize your expenses directly under the Parent account; either use one of the existing subaccounts or, if none are quite correct for your needs, create a new subaccount that does fit your needs.

You will, of course, need to recategorize any existing transactions that are directly tied to the Parent expense on your Chart of Accounts. The P&L will give you a convenient subreport if you double-click on the amount tied to the -Other listings.

FishingForAnswers · ‎September 25, 2024

@CharleneMaeF You should not be instructing customers on how to delete their accounts when you don't understand their question.

Carolexx · ‎September 25, 2024

Thank you, I guess I have to post them all under the main account. I think I can sort them if I need to and your reply answers my questions about how these darn accounts got there. My CPA thought I was opening new accounts when we are trying to have less sub accounts. Thank you. I appreciate your answer.

Carolexx · ‎September 25, 2024

I don't want to delete the information in an account but just stop QB from creating an account when I try to post the transaction to the parent account. I know how to make the account inactive but that is not what I wanted to do and it doesn't work with the "other" accounts that QB creates. Thanks anyway for trying to help.

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