Setting Up Chart of Accounts In Quickbooks




Although it may appear rather simple to set up QuickBooks with all the support features the software has to offer, there is more to it than meets the eye.  For example, when you set up your chart of accounts, ordering the profit and loss accounts by no particular method other then alphabetical does not help you run your business.  A good chart of accounts should provide you with a wealth of information when you print your financial statements (balance sheet and profit and loss).  If your business offers different services or products, then you might want your profit and loss to show you how much income your business earned this month from each service.  For example, if you are a service company offering consulting services, repairs services, maintenance agreements and management services and have setup separate income accounts for each, you may want to your payroll expenses to reflect similar expenses such as consulting wages, maintenance wages etc to mirror your revenue sources.  This would tell you how much money is being made on each type of service.  Are you making as much as you thought?  Maybe you should eliminate an unprofitable service and develop a marketing plan around the more profitable one.  Maybe you are not pricing your services correctly.  All this information and more can be derived from setting up your chart of accounts correctly.  Grouping all your payroll related expenses near each other, then grouping all your general expenses like office supplies and dues & subscriptions together and then all your facility expenses together, makes it a lot easier to read and get information that will allow you to make good business decisions. 


For help setting up your QuickBooks, call our office at 508-485-3811.


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