Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
Chapter 21
Chapter 22
Chapter 23
Chapter 24
Chapter 25
Chapter 26
Chapter 27
Chapter 28

Chapter 2

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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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Last modified: May 21, 2004