Video: Chart of Accounts…What is that?

QuickBooks for Mac didn’t invent the Chart of Accounts (some accountant-type did way back when), but we can help you use it to get more insight into your business. Here’s a brief introduction to your Chart of Accounts.

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Video script:

  • Hi, I’m Shelly King with the QuickBooks for Mac team, and I’m going to talk to you about the Chart of Accounts.
  • Your chart of accounts is a complete list of a business’s accounts and their balances. You use it to track how much money your company has, how much money it owes, how much money is coming in, and how much is going out.
  • You can think of it this way. If you were using pen and paper to run your business, you might use the old shoebox method of tracking your transactions, sorting all your transactions by keeping them in labeled boxes. In QuickBooks, accounts work kind of the same way. Your QuickBooks transactions are associated with an account, and your accounts are listed in your Chart of Accounts. So you accounts are like the shoe boxes, and the Chart of Accounts is like the closet you keep them in.
  • One mistake new QuickBooks users sometimes make is thinking that their Chart of Accounts lists only their bank accounts. It’s true that your bank accounts are listed in your Chart of Accounts, but so are your expense accounts, income accounts, and others. I’ll talk about types of accounts in another video.
  • When you first create your company file, QuickBooks sets up a basic set of accounts for you based on the type of business you’re in.
  • Then in your Chart of Accounts, you can modify the accounts QuickBooks set up for you. There’s so much you can do on your Chart of Accounts, like add new accounts, create subaccounts, print your list of accounts, and more. In this example, I’m creating an account for my bank account and then entering an opening balance for that account.
  • You can also click on an account to open its register and view the all the transactions associated with that account.
  • So that’s a brief introduction to Chart of Accounts.  To learn more, you can go to QuickBooks Help. Or go to the QuickBooks Essentials menu on Little Square and choose Accounts.
  • Thanks for watching.

About Shelly King

Shelly King works for Intuit as a member of the QuickBooks for Mac team. She’s the Managing Editor for Little Square and its main contributor. Shelly grew up in the South until 1994 when the Internet called her to Silicon Valley. She’s done a lot on the web ever since. Little Square was her idea. Yep, it’s all her fault. See all of Shelly's articles

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