![]() Bank-Used to track your cash in and out of the business.QuickBooks offers these categories in the order of how liquid the asset is-or in simple terms, how quickly you can turn the asset into cash: AssetsĪssets include something you have purchased in the past that will be used in the future to generate economic benefit. There are six standard account categories used for tracking the financial activity of your business: assets, liabilities, equity, income, cost of goods sold, and expense. Understanding the chart of accounts isn’t complicated. ![]() When this list is created with summary accounts and you use the other list types for detail, you can capture information in a timely manner, which will help you make good financial and management decisions for the business.Ī well-defined QuickBooks data file most likely includes the use of items, classes, and customer types, in addition to the chart of accounts. This list is one of the most important lists you will use in QuickBooks it helps you keep your financial information organized. The chart of accounts is a list of asset, liability, equity, income, and expense accounts to which you assign your daily transactions. ![]() We will start first with the chart of accounts. It might already exist if you created your file with the Express Start discussed in Chapter 1, “Getting Started with QuickBooks.” What becomes problematic for some is how to efficiently use each of the available list types when you want to segment the business reporting activity in QuickBooks. The QuickBooks chart of accounts is easy to set up. Customer Type List-Capability to view your gross profit by user-defined customer types.Class List-For tracking different corporate profit centers (divisions).Items List-For tracking the profitability of individual services and products sold.Chart of Accounts-For organizing your daily transactions.With QuickBooks, you can use the following lists to analyze your business:
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