How to Set Up Your QuickBooks 2010 Chart of Accounts List - dummies

How to Set Up Your QuickBooks 2010 Chart of Accounts List

In QuickBooks 2010, the Chart of Accounts List is a list of accounts that you use to categorize your income, expense, assets, liabilities, and owner’s equity amounts. Fortunately, you can create new accounts for your Chart of Accounts List easily.

1Choose Lists→Chart of Accounts.

QuickBooks displays the Chart of Accounts window.

2Click the Account button at the bottom of the window.

QuickBooks displays the Account menu.

3Select New from the Account menu.

QuickBooks displays the first Add New Account window.

4Select the appropriate Type radio button to identify the type of account that you’re adding.

QuickBooks supplies the following account types: Income, Expense, Fixed Assets, Bank, Loan, Credit Card, and Equity. Also, if you mark the Other Accounts radio button and open the Other Accounts Type drop-down list, you can select Accounts Receivable, Other Current Asset, Other Asset, Accounts Payable, Other Current Liability, Long Term Liability, Cost of Goods Sold, Other Income, and Other Expense.

5Click Continue.

QuickBooks displays the second Add New Account window.

6Enter a name in the Name text box.

The name that you give the account will appear on your financial statements.

7If the account you’re adding is a subaccount underneath a parent account, identify the parent account by selecting the Subaccount Of check box.

After you select the Subaccount Of check box, select the parent account from the Subaccount Of drop-down list.

8(Optional) If you’re setting a bank account that uses a currency other than your home country currency, select the bank account currency from the Currency drop-down list.

If you told QuickBooks that you work in multiple currencies during the EasyStep Interview setup process, QuickBooks wants you to identify those bank accounts, customers, and vendors that use a currency different from your home currency. (Note: The Currency drop-down list doesn’t appear in the figure in this list because within the example QuickBooks file, the multiple currency tracking feature isn’t turned on.)

9(Optional) Provide a description for the new account in the Description text box.

Without a description, QuickBooks can still use the account name on financial statements. If you want a more descriptive label placed on accounting reports, use the Description text box.

10Provide the other account information QuickBooks requests.

The Add New Account window shown in the figure in this list includes a Bank Acct. No. text box. Other account types may have similar boxes for storing related account information. For example, the credit card account type version of the Add New Account window lets you store the card number.

11Select a tax form and tax line from the Tax-Line Mapping drop-down list.

This selection identifies the tax line on which the account information is to be reported. You may not need to assign a particular account to a tax line if that account data isn’t reported on the business’s tax return.

12(Optional but dangerous) Record an opening balance for the account.

Typically, you shouldn’t supply an opening account balance for an account. For example, when you click the Enter Opening Balance button, QuickBooks displays a dialog box that you can use to set a starting account balance.

13After you describe the new account that you want to set up, click OK to save the new account to the Chart of Accounts List.

Alternatively, you can also click the Next button to save the account information and then redisplay the Add New Account window so that you can add another account.