What are Chart of Accounts in QuickBooks

What is Chart of Accounts?

          These are accounts that are used for the day to day running of the business example are Bank account, account receivables, account payable, fixed asset account, liability account. Etc.

Automatically, QuickBooks helps you to create chart of account when creating your company. But if possible you want to add another account to your chart, follow the steps below.

 To create a chart of account,

 1) Click ‘LIST’ at the Menu Bar, Select “Chart of accounts”

2) The window below appears. To create a new account, Select ‘Account’ at the bottom of the window click “New”. This window contains the list and number of chart of accounts.

3)    After completing the 2^nd step, the next window below appears

4) Choose one account type from the list of accounts and click Continue. For example, to create an expense account, you choose expense by ticking the small round hole.

5) After clicking ‘continue’, the next window below appears

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a)  Account Type: If possible you change your mind by creating an income account instead an expense account, it can be changed here.

b)  Account Name: The name of the account to be created

c)  Description: Description about the account (If any)

d)  VAT Code: Choose from the drop down arrow whether VAT should be charged on the account or not.

e)  Number: A number to be used to track the account

f) Click “Save & Close” after filing the necessary information. Automatically, the account created will be shown in your chart of account list.

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