Setting up Chart of Accounts in Quickbooks

Chart of Account list is a list of all accounts with different category. In here, quickbooks users  categorize the income, expense, asset, liabilities and owner's equity amount. But since QuickBooks is very flexible, users can easily add new accounts to Chart of Accounts List without a sweat.

The Add new account window in QuickBooks Chart of Accounts will let you choose the account type. It will show the following categories:

• Income
• Expense
• Fixed Asset
• Bank
• Loan
• Credit Card
• Equity
• Other Account Types

If the category is not listed on any given item, you should choose Other Account Types. In here you can choose any of the following categories:

• Accounts Receivable
• Other Current Asset
• Other Asset
• Accounts Payable
• Other Current Liability
• Long Term Liability
• Cost of Goods Sold
• Other Income
• Other Expense

You can also add a sub account, all you have to is just click and select the parent account from the sub account list.

Once you successfully put description on the account you can either click Next to add a new account or just click OK to save the account you just created.

Just repeat doing the steps and you can create the new Chart of Accounts list in Quickbooks.