Add or edit the chart of accounts in QuickBooks

Add or edit the chart of accounts in QuickBooks

The chart of accounts is a list of all the accounts and their balances in your business. These accounts are used in QuickBooks to categorise transactions on anything from sales forms to audits and tax forms. Each account has a transaction history that shows how much money you have in each account. Here’s all you need to get started.

What are the different account styles on the list of accounts?

You’ll see a long list of accounts when you open your map of accounts. Account histories are what they’re called. Each account has its own set of records. To check the account’s transaction history and current balance, simply go to the account history. Various account forms are available in your map of accounts for categorising transactions:                                                   

  • Assets: Purchase records for items such as cars, supplies, facilities, and other business assets.
  • Liabilities: Liabilities are records of money owed to you but not yet paid.
  • Income: Sales revenue or profits for services rendered are examples of transactions and payments you receive from your regular day-to-day business.
  • Expenses: Money you spend on things like ads and marketing, office supplies, and rent as part of your daily business operations.

Types of Account

In QuickBooks Online, there are two types of accounts: the Balance Sheet account and the Income and Expense account. Assets such as bank accounts and equipment, liabilities such as credit cards and bank loans, and equity, reflecting the company’s health, are all represented on the balance sheet. These accounts are also listed on the balance sheet, one of the most important financial documents. The regular Balance Sheet accounts are as follows:

  • Accounts Payable
  • Accounts Receivables
  • Bank
  • Asset
  • Long-Term Liability or Other Current Liability

Accounts of income and expenditure: Income accounts track where the company’s money comes from, while cost accounts follow where it goes. Benefit and spending accounts, unlike balance sheet accounts, do not have their registers.

  • Income / Other Income
  • Expenses / Other Expenses

The basic Chart of Accounts given during the initial QuickBooks Online account setup would meet most companies’ needs. Still, you will need to add to, edit, or remove accounts from your Chart of Accounts due to changing business requirements.

Create a new account:

  • From the left menu, choose Accounting.
  • To begin, select New.
  • In the Category Type drop-down menu, choose the required account type.
  • In the drop-down menu, choose the required Detail Kind.
  • Complete the remaining fields before clicking Save and Close.

Edit an account:

  • Select Accounting from the left menu to edit an account.
  • Locate the account you want to change.
  • Select Account history or Run a report from the drop-down menu (depending on the account).
  • Choose Edit.
  • After you’ve made all of your desired improvements, press Save and Close.

Edit the history of an account:

  • From the left menu, choose Accounting.
  • Locate the account you want to change.
  • Account history can be found by selecting it.
  • Choose the transaction you want to alter.
  • From here, you can delete, edit, cancel, or save changes to all available fields by clicking Delete, Edit, Cancel, or Save.

Import your chart of accounts by formatting your spreadsheets

A spreadsheet in Excel or a CSV file can be used to import the map of accounts. Here’s how to prepare your spreadsheet for import into QuickBooks:

  • Build a new account spreadsheet or open an existing one. Alternatively, you can import your chart of accounts from a different QuickBooks business.
  • Make sure your spreadsheet has the following columns:
        • Account Type Detail Type
        • Account Name Type 

(Please note that If you’re unfamiliar with QuickBooks forms and information types, you can leave these fields blank and fill them in later.) 

  • Add an Account Number section to your spreadsheet if you sort your accounts by number. If you don’t use account numbers, you can skip this step.
  • If you have a sub-account, enter its name in the Account Name column as follows: Sub-account is a sub-account of the primary account. Utilities: Gas, for example. More examples of how to format sub-accounts can be found in the table below.
  • If all appears to be in order, save your spreadsheet in Excel or CSV format.

Summarise

The accounts’ chart is a comprehensive list of all the business accounts and balances accounts and balances to summarise. It represents and organises the company’s assets, liabilities, profits, and QuickBooks Desktop software expenses. I hope that this blog helps you understand the chart of accountants in QuickBooks Desktop software.

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