馃攳
Lesson 12 How To Set Up A Chart Of Accounts In QuickBooks Online 2016 - YouTube
Channel: FitSmallBusiness
[0]
welcome to the fit small business
quickbooks online training course in
[3]
this lesson we're going to cover how to
set up the chart of accounts in
[7]
QuickBooks Online to follow along with
me log in to your QuickBooks Online
[11]
account now or click the link below this
video for a free 30-day trial of
[15]
QuickBooks Online you can also find a
link below this video to our full
[19]
QuickBooks Online course and other
helpful resources let's get started the
[24]
chart of accounts is the backbone of
your bookkeeping and accounting system
[28]
all of the transactions that you enter
into QuickBooks are categorized
[32]
behind-the-scenes using the chart of
accounts so that financial statements
[36]
such as your profit and loss statement
or income statement can be generated for
[41]
the purposes of this video we will use a
fictitious company called paul's plumbing
[45]
as you view this video think about how
the information might differ for your
[49]
business QuickBooks Online will create a
chart of accounts list based on the
[54]
industry that you select it when you set
up your account a few of the accounts
[58]
that QuickBooks will automatically
create for you our accounts receivable
[63]
accounts payable inventory asset sales
tax payable and retained earnings if you
[71]
want to keep track of something that is
not on the default chart of accounts
[74]
list you will need to create a new
account some things to consider when
[78]
deciding if you need to create a new
account are what items would you like to
[82]
track that are not currently on your
chart of accounts list for example if
[87]
you want to keep a close eye on the fees
that your bank charges you then you
[90]
could set up an expense account for Bank
service charges what accounts are on the
[95]
list that you know you will never use
for example if you don't sell products
[99]
then you would have no use for an
account that tracks shipping and
[102]
delivery fees once you have decided what
account you would like to add or delete
[106]
you are ready to make the necessary
changes in QuickBooks we will use our
[111]
fictitious business pulse plumbing to
walk through how to add delete or modify
[115]
the chart of accounts list in the
written step-by-step lesson you will
[120]
find a quick reference chart to assist
you with setting up new accounts and to
[123]
give you the big picture of what's
happening behind the scenes in
[126]
QuickBooks just click on this link to
access the written instructions for this
[130]
lesson Paul would like to track the
income that he makes from his residence
[133]
customers separate from the income that
he makes from commercial customers let's
[138]
set up these two accounts for Paul's
plumbing to begin after you have logged
[142]
into your QuickBooks Online account
click on the gear icon located to the
[146]
left of your company name and select the
chart of accounts from the drop down the
[154]
chart of accounts list will display to
set up a new account just click the blue
[159]
new button and here are the fields that
we need to create to set up a new
[165]
account category type if you click the
drop-down for category type is going to
[171]
be income this lets QuickBooks know how
we want this particular account to be
[178]
set up so we'll select income from the
drop-down here detail type typically you
[186]
will select sale of product income if
you sell products or service fee income
[191]
if you sell services so we'll select
service fee income here and in the
[197]
account name field we want to put
residential income and then the
[201]
description field typically can be the
same as the account name field or if you
[206]
have a much more detailed description
that you'd like to indicate here you can
[210]
do that as well so we'll go ahead and
put services sold to residential
[214]
customers for our detailed description
for this account our options for saving
[221]
this information are we could just save
and close this if we were done setting
[226]
up accounts or we have the option to
save and create a new account which will
[232]
save this account and it will keep the
screen open so that we can set up the
[237]
commercial income account so that's what
we'll do select save and new and then
[242]
we'll go ahead and set up the commercial
income account
[247]
so again category type is income detail
type is service fee income and we will
[255]
call this commercial income we'll go
ahead and save and close this time since
[264]
we are done setting up our account
this will take us back to the chart
[268]
of accounts list where we can see the
new accounts we set up there's our
[272]
commercial income account and then if we
scroll down we will also see our
[277]
residential income account you should
delete accounts that you do not plan to
[284]
use this can be helpful because the
account won't accidentally be used in
[289]
transactions and it makes your try to
accounts list much more manageable
[294]
you should never delete an account that
you have already used in a transaction
[299]
to delete an account you are going to
click the arrow to the right of the run
[304]
report link and select delete and the
next screen QuickBooks wants to confirm
[312]
that you actually want to take this
action
[314]
once you select delete there is no
automatic undo button if you
[319]
accidentally delete an account you will
have to add it back again so we'll go
[323]
ahead and say yes we want to delete this
account QuickBooks allows you to modify
[328]
an account at any time to modify an
account in QuickBooks you want to click
[333]
the drop down arrow to the right of run
report once again and select edit you
[340]
want to make sure that you do not change
the category type if you have already
[346]
entered transactions using this account
if you do so it could impact your
[350]
financial statements so we'll go ahead
and modify the account name to be office
[356]
supplies and we'll go ahead and clued
that in the description as well and save
[363]
our changes that wraps up the section on
how to set up the chart of accounts in
[368]
QuickBooks online to access this course
or any of the others in the series click
[373]
this link for a free 30-day trial of
QuickBooks Online click the links below
[378]
this video if you have feedback about
this course or if you have any questions
[383]
please leave a comment below also don't
forget to subscribe
Most Recent Videos:
You can go back to the homepage right here: Homepage