Was this page helpful?
Thank you!

Comments or suggestions?



Enter Email Address (optional)
email

Types of QuickBooks accounts

There are two main types of accounts in the QuickBooks chart of accounts:

Balance sheet accounts

QuickBooks provides ten types of balance sheet accounts to choose from as you create and add to your chart of accounts. The following table describes each type of balance sheet account and the transactions you can use it for.

Use this account

To track

Bank

Checking, savings, and money market accounts. Add one bank account for every account your company has at a bank or other financial institution. (You can also use this type for petty cash.)

Accounts receivable
(A/R)

Transactions related to the customers that owe you money, including invoices, payments, deposits of payments, refunds, credit memos, and statements. Most companies have only one A/R account.

Other current asset

Assets that are likely to be converted to cash or used up within one year, such as petty cash, notes receivable due within a year, prepaid expenses, and security deposits.

Fixed asset

Depreciable assets your company owns that aren't likely to be converted into cash within a year, such as equipment or furniture.

Other asset

Any asset that is neither a current asset nor a fixed asset, such as long-term notes receivable.

Accounts payable
(A/P)

Transactions related to money you owe, including bills, bill payments, and any credit you have with vendors. See also current and long-term liability accounts.

Credit card

Credit card purchases, bills, and payments.

Current liability

Liabilities that are scheduled to be paid within one year, such as sales tax, payroll taxes, accrued or deferred salaries, and short-term loans.

Long-term liability

Liabilities such as loans or mortgages scheduled to be paid over periods longer than one year.

Equity

Owner's equity, including capital investment, drawings, and retained earnings.

Income and expense accounts

Income and expense accounts track the sources of your income and the purpose of each expense. When you record transactions in one of your balance sheet accounts, you usually assign the amount of the transaction to one or more income or expense accounts. For example, not only do you record that you took money out of your checking account, but you keep track of what you spent the money on: utilities, perhaps, or office supplies.

QuickBooks does not display balances for income and expense accounts in the chart of accounts. To see these balances, go to the Reports menu, choose Company & Financial, and then click one of the profit and loss report options. You can also select the income or expense account in the chart of accounts and click QuickReport.

Use this account

To track

Income

The main source of money coming into your company.

Other income

Money received for something other than normal business operations, such as interest income.

Expense

Money that's leaving your company.

Other expense

Money spent on something other than normal business operations, such as corporate taxes.

Cost of Goods sold

The cost of goods and materials held in inventory and then sold.

QuickBooks sets up nonposting accounts for purchase orders and estimates if you turn on those features.

See also

KB ID# H_COA_INFO_COA_ACCOUNT_TYPES
10/30/2014 5:56:19 AM
PPRDQSSWS406 9102 Pro 2013 346ee8