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Work with the chart of accounts in QuickBooks Desktop

SOLVED•by QuickBooks•921•Updated September 27, 2023

Learn how the chart of accounts works in QuickBooks Desktop.

The chart of accounts lists all your company's accounts and their balances. QuickBooks uses this list to track funds, debts, money coming in, and money going out.

Each account has a transaction history that you can view in the register. You can also run a quick report for details.

Account types on the chart of accounts

When you open your chart of accounts, you'll see a long list of accounts. These are known as account histories. Each account has its own account history. Simply go to the account history to review its transaction history and current balance.

Your chart of accounts gives you different account types to categorise transactions:

Assets: Purchases for things like vehicles, equipment, and buildings used for your business.
Liabilities: Funds you owe but haven't paid yet.
Income: Sales transactions for products or services sold.
Expenses: Costs for business operations, like advertising and promotion, office supplies, and rent.

Open your chart of accounts

Select Company, Lists, or Accountant and then Chart of accounts.

Accounts QuickBooks sets up for you

When you create a new company file in QuickBooks, you tell us what type of business you have.

Everyone gets the same set of standards accounts. QuickBooks adds additional accounts automatically based on your industry. You don't see an account you need, you can always create it manually.

Account	What it is	Automatically added by QuickBooks when you...
Accounts Payable (A/P)	Record of the outstanding bills of the business. If your business uses multiple A/P accounts, QuickBooks will let you choose the account you want to use when you enter and pay bills.	Create a bill for the first time.
Accounts Receivable (A/R)	List of transactions related to customers who owe you money. If you need to use more than one A/R account, the program will let you choose the A/R account that you want to use when you create an invoice or receive a payment.	Create an invoice for the first time.
Opening Balance Equity	Ensures that you get a correct balance sheet for your company, even before you've entered all your company's assets and liabilities.	Enter the opening balance for a balance sheet account.
Payroll Expense	Tracks payroll items (expense) for the company, including salaries, wages, bonuses, commissions, employer contributions such as company paid health plan and company paid portion of taxes .	Turn on payroll for the first time.
Payroll Liabilities	Tracks taxes you deduct from your employees' salary until you turn them over to the government, including federal and state income withholding taxes, local taxes and the employee paid taxes .	Turn on payroll for the first time.
Purchase Orders	Non-posting account that does not affect your balance sheet.	Create a purchase order for the first time.
Retained Earnings	Tracks profits from earlier periods that have not yet been distributed to owners. At the beginning of the financial year, QuickBooks automatically transfers net income into your retained earnings account.	Set up a new company file.
VAT Payable	Tracks all VAT you collect and pay.	Turn on VAT.
Uncategorised Expense		Enter an opening balance for a supplier.
Uncategorised Income		Enter an opening balance for a customer.
Undeposited Funds	Holds the payments collected until you deposit them to the bank.
Stock Asset	Tracks the current value of your stock.	Add an stock part or assembly for the first time.
Reconciliation Discrepancy	Tracks reconciliation adjustments.	Enter an adjustment to reconcile discrepancies.

Add or edit an account

QuickBooks automatically sets up your chart of accounts for you. If you need to add additional accounts:

Here’s how to add a new account to your chart of accounts in QuickBooks Desktop for Windows.

Hide or delete an account

Here’s how to make an account inactive (or active) in QuickBooks Desktop for Windows.

Add account numbers

Although you're not required to use account numbers, your accountant may recommend them. QuickBooks automatically adds account numbers before account names in the chart of accounts. Default account numbers are based on Generally Accepted Accounting Principles (GAAP). You can change an account number at any time:

Here’s how to set up account numbers in QuickBooks Desktop for Windows.

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