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Established Member

Why does the Chart of Accounts have so many Expense Categories, but only one COGS Category?

 
3 Comments
Moderator

Hi ["Cspayde12"], The first time you set up your QuickBoo...

Hi ["Cspayde12"],

The first time you set up your QuickBooks Online account, the system automatically creates the list of Chart of Accounts. It is designed for the type of business you've selected. 

You can add more accounts by clicking on the New button in the Chart of Accounts section. 

You are always welcome to post more questions. We are here to help. 

Established Member

Hi! Yes, but my real question is which should I be using?...

Hi! Yes, but my real question is which should I be using? We are a home remodeling general contracting company. I have only entered expenses that pertain to individual properties so far. And I have projects set up for each house we are working on so they are accurately reflected in the customer project. But, I entered everything as an expense and I think they should have been COGS??? Also when I added them they automatically go into the banking register and they are not all payments that came from the checking account. Why is this happening? I have purchses QBO for dummies, but it doesn't answer these types of questions.
Moderator

Hi @["Cspayde12"], You can use these accounts depending...

Hi @["Cspayde12"],

You can use these accounts depending on your transactions. When it comes with which accounts to select, it is best to consult an accountant/bookkeeper. They know how to organize transactions according to the State sales policies.