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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
Owner’s Equity,
unless you want something more
personal. It is a record of your ownership.
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