For accountants
QuickBooks does not have a XE
"accountants:information for"
conventional accounting structure. The
DOS version has no general journal. The
graphics versions (Windows and Macintosh)
versions have a general journal entry window,
(Enter Special Transactions) but it is
rarely used. Most accounting entries are
posted directly into the ledger
accounts. Each account entry names the
opposing account(s). When any item is
posted, QuickBooks also posts the opposing
account entry. (A general journal
report is available in the graphics
versions.) An invoice line item for a
sale is usually a debit to receivables, and a
credit to a sales account.
From the chart of
accounts, it is possible to call up the data
in (almost) any balance sheet account. The
usual ledger account format is not
used. QuickBooks uses a register,
somewhat like a check register. Income
and expense (I&E) accounts do not have
registers. The information in I&E
accounts is contained in transactions in
balance sheet accounts. Various reports
can be generated, showing the content of
I&E accounts, in detail or in summary.
This may seem like a
revolting approach to accounting, and it may
not be easy for an accountant to
accept. When it is accepted, it
provides the business owner with a very
usable way to gather the basic data that
accountants need for final reports.
Two balance sheet accounts
do not have registers. The first is
“Retained Earnings.” It will be found in
the chart of accounts, as an equity account
with no balance showing. It is an
income and expense summary account for all
prior accounting years. The content of
this account is generated when the Balance
Sheet report is requested. This account
may be renamed, but it cannot be deleted nor
can the function be changed.
(QuickBooks version 1 did not have this
account.) The last equity account on the
balance sheet report is a XE
"current earnings account" Current
Earnings or XE "net income
acount" Net Income account. This
is an I&E summary for the current year,
but is not listed in the chart of
accounts. (The name of this account
varies with versions.)
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