Using Account Numbers in Your QuickBooks Chart of Accounts
The QuickBooks Chart of Accounts is the framework used to categorize the information and transactions used to create reports. By using a chart of accounts and creating reports, you will always know the current state of your business. The chart of accounts is made up of five types of accounts common to all businesses- the income and expense accounts used by the Profit and Loss Statement, and the asset, liability, and equity accounts used by the Balance Sheet. Each time you enter a transaction, QuickBooks will prompt you to categorize it into one of these five types of accounts. Questions & Answers: Why is the chart of accounts important? The Chart of Accounts is the backbone of your accounting system. It is the complete list of all the accounts you…