After you’ve had your business for a while, you won’t add new accounts very often. However, you might need one if you start up a new line of income, take on a mortgage for your new office building, or want a new expense account for the subcontractors you hire to manage your workload.
Creating accounts in QuickBooks is simple. Before you can create an account, you have to open the Chart of Accounts window. Here are a few ways to do that:
• Press Ctrl+A (which you can do from anywhere in the program).
• At the top right of the Home Page, in the Company panel, click Chart of Accounts.
• In the menu bar, choose Lists→Chart of Accounts.
The Chart of Accounts window works much like other list windows. For example, you can sort the account list by different columns or drag accounts in the list to different locations.
Once you’ve opened the Chart of Accounts window, here’s how to create an account:
1. Press Ctrl+N to open the Add New Account window.
Alternatively, on the menu bar at the bottom of the Chart of Accounts window, click Account→New. Or right-click anywhere in the Chart of Accounts window, and then choose New from the shortcut menu. No matter which method you use, QuickBooks opens the Add New Account window shown in Figure 3-2.
2. Select the type of account you want to create, such as Bank for a bank account,
and then click Continue.
The Add New Account window lists the most common kinds of accounts. Ifyou don’t see the type you want—Cost of Goods Sold, for example—select the Other Account Types option, and then choose from the drop-down menu visible in Figure 3-2.
3. In the Number box in the upper right of the Add New Account window (Figure 3-3), type the account number you want to use in the chart of accounts. (If you don’t see the Number box, flip to page 54 to learn how to display it.)
If you keep the Chart of Accounts window in view while creating accounts, you can review the account numbers for similar types of accounts. That way, you can give the new account a number that’s 5 or 10 higher than an existing
account number, so that the new one snuggles in with its compatriots in the chart of accounts.
4. In the Account Name box, type a name for the account.
5. If you want the account to be a subaccount, then turn on the “Subaccount of” checkbox. Then, in the drop-down list, choose the account that you want to act as the parent.
As the box on page 60 explains, subaccounts are a good way to track your finances in more detail. In the chart of accounts, subaccounts are indented below their parent accounts to make the hierarchy easy to see, as shown at
the bottom of Figure 3-1.
6. If you’ve turned on QuickBooks’ multiple currency preference, the Currency box appears below the “Subaccount of” checkbox. If the currency for the account is different from the one listed there, choose the correct currency in the drop-down list.
If you do business in more than one currency, see page 656 to learn how to set up multiple currencies in QuickBooks.
7. To add a description of the account, fill in the Description box.
For instance, you can define whether a bank account is linked to another account or give examples of the types of expenses that apply to a particular expense account. The Description field can hold up to 200 characters, which should be more than enough.
8. If you see a field for an account number—such as Bank Acct. No., Credit Card Acct. No., or simply Account No.—type in the number for your real-world account at your financial institution (checking account, savings account, loan, and so on).
If the account type you chose in step 2 doesn’t include a field for an account number, you see the Note field instead, which you can use to store any additional information you want to document about the account.
9. For a bank account, in the Routing Number box, type your bank’s routing number.
This is the nine-digit number in funny-looking font at the bottom of your checks.
10. To associate the account with a tax form and a specific line on that form, in the Tax-Line Mapping drop-down list, choose the entry for the appropriate tax form and tax line.
If you haven’t specified the tax form that your company files with the IRS, the Tax-Line Mapping field is set to <Unassigned>. See page 11 to learn how to choose a tax form for your company.
If QuickBooks hasn’t assigned a tax line for you, you can scan the entries in the drop-down list for a likely match. If you don’t find an entry that seems right or if QuickBooks tells you the one you chose isn’t compatible with the account type, your best bet is to call your accountant or the IRS. You can also get a hint of an appropriate tax line for the account you’re creating by examining one of QuickBooks’ sample files.
To remove a tax line from an account, in the drop-down list, choose <Unassigned>.
11. Click the Save & New button to save the current account and create another one.
To save the account you just created and close the Add New Account window, click Save & Close instead. Click Cancel to discard the account-in-progress and close the Add New Account window.
12. If the Set Up Bank Feed dialog box appears, click Yes if you want to set up a bank account for online services.
When you click Yes, QuickBooks’ windows close while you go through the setup process.
If you want to set up Bank Feeds later—or never—click No.
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- Author: Bonnie Biafore
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