QuickBooks Chart of Accounts

How to Optimize QuickBooks Chart of Accounts

QuickBooks is revolutionary accounting software that has made the lives of individual accountants, small and mid-segment businesses, and self-employed professionals much easier. While using QuickBooks, if the user faces issues, the first resource to look up is the QuickBooks Support Online Guide. The following document lists the best options to optimize the QuickBooks Chart of Accounts.

What is QuickBooks Chart of Accounts?

The QuickBooks Chart of Accounts is the chart for recording earnings, liabilities, and expenditures all in one place. The income account covers all businesses that generate revenue. The liabilities account maintains a list of entries that the business owner owes others. The assets account maintains the list of assets owned by the individual. The expenses account maintains rent, salary to be paid, and any other expected expenses.

What is the need for optimization of QuickBooks Chart of Accounts?

As with any other business operation, maintenance of QuickBooks Chart of Accounts is key to ensuring smooth execution of business. It enables lesser room for error, management issues, and troubleshooting. The following is the list of benefits reaped by optimizing QuickBooks Chart of Accounts:

  1. To ensure that only required accounts are maintaine
  2. Easier identification and management of accounts.
  3. Reduce the possibility of errors and miscalculations.

You May Also Read: 10 Most Common Quickbooks Payroll And Bookkeeping Mistakes That You Should Definitely Avoid

What are the best ways to optimize the QuickBooks Chart of Accounts?

  1. Sort or categorize accounts by alphabetical order, account number or account type:
    1. Firstly, click on the gear icon in the QuickBooks window and click on company Settings.
    2. Navigate the left-hand side menu. Go to the Advanced menu. Click the edit icon next to the Chart of Accounts menu item.
    3. After that, enable the option for Account numbers.
  2. Utilize the ask my accountant feature.
  3. Meanwhile, categorize accounts into parent accounts with sub-accounts under them to maintain clarity.
  4. Configure customized reports that offer a perspective about the current state of affairs. Save the report settings to run them periodically or as and when required.
  5. Delete or deactivate unused accounts.
    1. If there are accounts that are no longer needed, it is best to deactivate them:
      1. Click on the gear icon and click Chart of Accounts.
      2. Select the account that you wish to delete.
  • In the action column, select delete from the drop-down.
  1. Confirm the delete action.
  2. Restore accounts in case you need the removed accounts.
    1. Click on the gear icon and select Chart of Accounts.
    2. After that, choose the settings icon.
  • Enable the option to include inactive.
  1. After that, select the account that you need to restore.
  2. In the action column, select Make Active from the drop-down.
  3. Track ‘Accounts Receivable’, ‘Accounts Payable’, and clean up these accounts. Make sure they include all items.
  4. Ensure all business transactions are brought into the purview of QuickBooks. Missing to record small spending or income transactions in QuickBooks will cause problems with reconciliation later on.

Merging of accounts

  1. In case there are similar accounts, it is important to merge them to avoid duplicity of account types. The steps are written as follows:
    1. Firstly, go to the ‘Tools menu’ and click on ‘Chart of Accounts’.
    2. Highlight the account that you need to merge.
    3. After that, click on the edit button and copy the account name.
    4. Return to the Chart of Accounts.
    5. Select the duplicate account and click edit.
    6. Meanwhile, paste the copied account number into the name field.
    7. Edit the details to reflect the merged
    8. Click ‘Save’ and confirm the merging
  2. Make changes to associated entities to reflect the changes done above.
  3. Utilize customization options in Account settings.
  4. Lastly, maintain simplicity of the chart. Utilize other tools that complement the Chart of Accounts.

Need further assistance?

The above article lists the steps to be followed to optimize the QuickBooks Chart of Accounts. In case, you want any further assistance, the best place to contact is QuickBooks Customer care. Touch-base with the team in the QuickBooks Support Phone Number. Feel free to explain your needs to the support personnel and get your doubts clarified.

, , , ,

Comments are closed.
error: Content is protected !!