Ronika Khanna walks through setting up your Chart of Accounts in QuickBooks Online, starting with the default accounts QBO creates for you. Learn the standard account types and balance-sheet order, then add a new income account step by step using the New button, naming, and tax codes. A downloadable slide shows account-type guidance for your setup.
Questions this video answers
October 7, 2023.
Gear section → Chart of Accounts (or via the Accounting tab/menu).
Click the New button in the top right corner of the Chart of Accounts screen.
"Surveillance" (sales of surveillance equipment, set as other primary income).
HSD Ontario.
Chapters
Hello. This is part two on our series on the chart of accounts in QuickBooks where we will be discussing how to set up an account in QuickBooks. So let's get right into it.
You can go to the menu on the left hand side. It will currently it's under the accounting tab, but QuickBooks keeps changing this. So if you don't want to go through every tab and look for it, you can simply go to the Gear section and click on Chart of Accounts. So this chart of accounts has been set up automatically by QuickBooks in response to interview questions that they ask when you set up your QuickBooks online file. In my case, I did not specify what type of business it was. So they set up a very bare bones chart of accounts. In some cases, if you are able to be more specific with the type of business that you have, this will be more filled out and will have most of the accounts that you need. However, it's very easy to go and add an account. Before we add an account, I would like to discuss a very important part of it which is the account type which we made reference to in our slides earlier. And we'll just go over the specific account types that you can choose as it is very important to get this correct.
Let's take a look at the different account types that are available in QuickBooks Online.
We mentioned the balance sheet. The order in which you will see your chart of accounts goes from assets to liabilities and then income and expenses which are in your profit and loss account.
This slide gives you a general idea of what each account type includes and will be available for download in the description section section of this video. So you can just follow the link to my website where you'll be able to download it.
Let's go back to QuickBooks Online now and add an account. So to add an account you simply click on New in the top right hand corner.
And this is where you will see select the account type.
As indicated on the slide. So let's say we want to enter a sales account and because this is the Sherlock Holmes Detective Agency, they actually sell surveillance equipment which I want to track separately because they actually sell quite a bit of surveillance equipment equipment and it makes sense to set up a separate account for this.
So the income, the sales of surveillance equipment is other primary income.
And we'll call this surveillance.
I should have chosen a shorter name. So is this a sub account? We can make it a sub account of sales.
And by making it a subaccount of sales, we can see our total sales from all sources. Or we can just see the sales for the surveillance equipment if we so desire. The default tax code in this case, I'm going to select HSD Ontario because most of my customers are in Ontario. This can always be changed on the invoice. So let's save and close this.
And you will see that it appears in your Chart of Accounts. This concludes part two of our series on the Chart of Accounts. To see part three where we will be discussing discussing the importing of a chart of accounts from an Excel file. You can find that on my channel at Montreal Financial under the playlist called Chart of Accounts. Have a great day.
