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By Robert Meigs, Jan Williams, Susan Haka, Mark Bettner

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1xxxx Assets 2xxxx Liabilities 3xxxx Equity 4xxxx Income 5xxxx Expenses (of a specific type) 6xxxx Expenses (of a specific type) 7xxxx Expenses (of a specific type) 8xxxx Expenses (of a specific type) 9xxxx Other Income and Expenses You can, if you wish, have a variety of expense types and reserve the starting number for specific types. Many companies, for example, use 5xxxx for sales expenses (they even separate the payroll postings between the sales people and the rest of the employees), then use 60000 through 79999 for general operating expenses, and 8xxxx for other specific expenses that should appear together in reports (such as taxes).

Designing a Chart of Accounts If you’re designing your own chart of accounts, be sure to do so carefully, because you have to live with the results every time you use QuickBooks. Discuss the design with your accountant, who can help you devise a scheme that works for the types of transactions you have to enter, and the reports you need. You have several decisions to make about the general format you’ll use for your chart of accounts. You need to decide whether to use numbered accounts, and if so, how many digits to use for each account.

It’s important to remember that this book was published at the time QuickBooks 2014 Premier Editions were released. Intuit issues periodic updates to the software, and those updates may change the way features appear in the software when compared to the discussions in this book. com) The author owes a debt of gratitude to the folks at Intuit, Inc. for responding to questions and bug reports. The author would also like to thank Brad and Mike at Real World Training for their invaluable assistance.

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