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 4

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Adding a New Account

With the  XE "sequence:chart of accounts"  XE "alphabetize:chart of accounts"  XE "chart of accounts:alphabetizing" chart of accounts displayed, click Account|New to bring up the new account dialog box:

If a different account type is selected, the dialog box will change, but is generally easy to follow.

Type drops a list containing most of the types described above.  A few types do not allow new accounts.  Selecting a different type may change the dialog box, but they are generally easy to follow.

Number will appear if you have checked Use Account Numbers in Preferences|Transactions or File|Preferences|Accounting.   Many accountants are accustomed to organizing accounts numerically . QuickBooks includes some standardized numbering.  Regardless of numbers, accounts will first be in order by types.

Name is for your reference, whatever you want to see in the chart of accounts for this account.

Sub-account of would make this account subordinate to another account of the same type, called the parent account.  This state can be changed.  For instance, if you have several bank accounts, the balance sheet can show a total of all bank accounts, if they are all sub-accounts of one umbrella account.

Description is also for your convenience. A reporting preference allows reports to show descriptions of accounts.

Bank No. is the number of your account at that bank.  To use online banking, this must be exactly correct.

Tax Line can be set up any time between now and income tax time.  It allows export of US income tax information to TurboTax Business.  A tax form must first be specified in Company Info.

Opening Balance is better left at zero; ignore the as of date.  If there is an entry, the opposing account will be Opening Bal Equity.

OK and Cancel have obvious functions.  Next completes setting up this new account, and goes to an empty box for setting up another.

Account is inactive (QuickBooks 5) allows an account to be so marked, and if you wish, hidden.  Most entities in most lists can be marked inactive and hidden.  This proves most useful in the customers list.

Whatever accounts can be added, are set up from this window.  Control-N is a shortcut key for new account.

A beginning balance is needed.  Chapter 5 gives a good example of setting up an opening balance, using the bank account as an example.

Another account is needed.  When an opening balance is entered in the bank account, an opposing account will be needed.  An equity account is appropriate.  Use the same sequence for making a new account, but select the account type, Equity.   Name the  account Owners Equity, unless you want something more personal.  It is a record of your ownership.

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Last modified: May 21, 2004