The chart of accounts is a list of all your company's accounts and their balances. In QuickBooks, you use these accounts to categorize your transactions on everything from sales forms to reports to tax forms. Each account has a transaction history and breaks down how much money you have (or owe). Here's what you need to know to get started.
What account types are 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 registers. Each account has its own account register. Simply go to the account register to review its transaction history and current balance.
Your chart of accounts gives you different account types to categorize transactions into:
- Assets: Records of purchases for things like vehicles, equipment, buildings, and other assets used for business.
- Liabilities: Records of money you owe but haven't yet paid.
- Income: Transactions and payments you get from your normal day to day business, such as sales revenue or income for services rendered.
- Expenses: Transactions of money you spend on expenses related to normal business operations, such as advertising and promotion, office supplies, and rent.
Here's a more detailed breakdown of account types. These definitions may be helpful if you have some accounting expertise. Most QuickBooks users don't need to know this level of detail.
Open your chart of accounts
In QuickBooks Online
Select Settings ⚙ and then Chart of accounts.
In QuickBooks Desktop
Select the Company, Lists, or Accountant menu and then Chart of accounts.
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.