Ronika Khanna shows how to enable account numbers in QuickBooks Online and set them up using standard conventions: 1000s for assets, 2000s for liabilities, 3000 for equity, 4000 for income, 5000 for cost of goods sold, and 6000 for expenses. Use batch edit to assign numbers and create subaccounts like Website Costs under Advertising to keep your chart organized.
Hello. This is the final video in our series on Chart of Accounts and QuickBooks Online. To see the first three videos, check out my channel at Montreal Financial and select the playlist called Chart of Accounts. There will also be a link to it at the end of this video. Some other tips with respect to your chart of accounts if you want to add account numbers. Currently the way this is set up, you can't add account numbers. But if you want more organization, more control over how your accounts appear on your reports, you would simply go to Account and Settings.
Go to the Advanced tab and here you would enable account numbers. You could show your account numbers and then you would click on Save.
When you click on Done.
So when you go back to your chart of accounts, you'll see that there is a new column here for number and this is where you can actually enter the numbers your accounts. You can follow the conventional format for accounting numbers, which starts at 1000 for assets, 2000 for liabilities, 3000 for equity, 4000 for income, 5000 for cost of goods sold, 6000 for expenses. And the account numbers would be something in that grouping. So for example, your bank could start at 1000. Your accounts receivable could be 1100. Now as we go down to your liabilities, your credit card could be 2,100. The TD visa could be 2110. If we go down to your income, consulting services could be 4010. Your cost of goods sold could be 5100. Advertising 6020. So you have the option to choose the account number that you want and again you would set them up so that they appear in that order on your reports.
If you want to. If you don't want to go into each account and click on Edit to manually update the chart of accounts, then what you would do is click on this little batch edit. And here you can actually assign all of the account numbers at one time. So this was a great time saver.
So, final pieces of advice on the chart of accounts. I recommend.
Customizing the chart of accounts to your business because you want the chart of accounts to help you get as much useful and meaningful information about your business as possible. So it is important to remember that on the profit and loss report, for example, you will see all of your accounts appear and it will tell you the total that you have spent spent on that item in terms of expenses or that you've received in terms of income from sales. So for example, perhaps you have a lot of website costs and normally website costs would go into advertising or marketing, but you really want to track your website costs separately because as mentioned they are quite significant. So you should absolutely go ahead and create a new account for website costs. You can make it a sub account of advertising. So if you want to see all of your advertising expenses, the total or just the website costs, keep in mind though you do not want to add too many accounts otherwise your reports become a bit cluttered. And there are also various ways of organization organizing data in QuickBooks Online from which reports can be generated that don't necessarily involve having to set up a separate account. So it's a bit of a trade off between having enough accounts that you have meaningful information.
But not too many accounts that your data just becomes cluttered. Your reports become cluttered.
That concludes our series on chart of accounts in QuickBooks Online. If you like the videos please like subscribe and leave a comment if there are other videos that you would like to see and I will try and make them. Have a great day.
