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SHOOTER
Level 1

Account setup

Hi there, I'm a complete newbie to the world of accounting software and have a question about where an account should be placed.

I understand (or I think I do) that it will go into the expense category but I'm wonderong which section.  It could be I'm going about it all wrong and if so, please guide me through it.

I would like to set up sub accounts in expenses for each of our utilites and rent. Electric, Water, Gas, etc.

Would they fall under facilites or operations. Is this the correct procedure to use?

Any help would be appreciated.

 

2 Comments 2
Rustler
Level 15

Account setup

I'm the brutally honest one, think blunt, around here, so...

You need to find a local QB desktop consultant to work with you. Based on your questions, new to accounting software is also new to accounting.

There is one section called expenses on the P&L where you list all expense accounts named as you need them, If you create a parent account, then in QB it is automatically a summing account and you do not post to it, instead you post to the sub accounts you create, ie.
Utility exp
>> elect
>> gas
>> water
etc

That section is for normal operating expenses, on the occasion that you have some extraordinary expense you use other expense for that.

How you structure the chart of accounts is up to you, but I always suggest you get the tax form the business will use and mimic that form for the parent level accounts, you can create sub accounts as needed to track details

SHOOTER
Level 1

Account setup

No problem on being brutally honest and I agree with your assessment. I appreciate your candor.

 

The very small non-profit I am involved with has "kept the books" in an archaic fashion for years and I have found it to be very hard to understand (they do as well) and pull information out of as it is in many different places.

In the past, we filed a 990N. Last year we exceeded the 50,000.00 requirement and if I am reading the regulations correctly must file a 990EZ or a 990.

My goal is to have QuickBooks set up using the NON-PROFIT chart of accounts and adding to them as needed for the beginning of next year and on January 1 use it exclusively to keep track of our organization finances and hopefully, as you suggested, have the information flow to the correct tax form.

This year (2018) we will not exceed the 50,000.00 requirement and for 2018 will probably go back to the 990N but in future years we could exceed it.

I'm thinking the help of a CPA now will pay dividends in future years as we grow.

I have a fair sense of accounting but some of the parent accounts are what are confusing me. I think I know the answer so thought I would ask which accounts the utilities went under.

 

Thanks for help.

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