How to Manage Accounts on QuickBooks Online

Authored by: Support.com Tech Pro Team

1. Introduction

How to Manage Accounts on QuickBooks Online

2. Manage Accounts

To track the transactions and balances for key reports like the Balance Sheet and Profit and Loss, QuickBooks online uses a list of accounts or a Chart of Accounts. The setup process will create a generic Chart of Accounts that can be customized.

Manually add an Account

Locate the Chart of Accounts, select the Gear Icon > Your Company > Chart of Accounts.

Select New from the top right-hand corner. This opens a new screen where the account can be configured.

Category Type - specifies the account type.

Cash and cash equivalents is used for setting up Bank Accounts. Credit Cards are set up as Category Type - Credit Card. Typically, Expenses are coded as ‘non-capital’ and Asset purchases are coded ‘capital’. Out of Scope refers to accounts and transactions that are not reportable. e.g. Owner’s Drawings 

Detail Type - provides more detail on the Category type selected. It is a compulsory field although it does not affect any financial reporting. Select the detail type closest to the account being set up.

Name - this is the name of the Account being set up. It is what is seen in the Chart of Accounts List.

Number – An optional account number.

Description - allows greater detail of the name to be added and is optional.

Is sub-account - place a tick in the sub-account selection field to make the account being set up a sub-account of another account.

Default Tax Code - select the appropriate GST coding for the account being set up. To update the Chart of Accounts the customer would click Save and Close.

An alternative way to navigate to the Chart of Account is via the Accounting tab from the left hand navigation bar.