How to Set Up Chart of Accounts in QuickBooks Online

Last Updated on October 14, 2020 by Editor Team

The chart of accounts is the backbone of your bookkeeping and accounting system. All transactions you enter in QuickBooks are classified behind the scenes using a chart of accounts in QuickBooks Online to generate financial statements, such as your profit and loss statement or income statement. So here we have the topic for you, ‘How to set up Chart of Accounts in QuickBooks Online?’. If you are interested in this topic then, continue with us…

Procedure to Set Up Chart of Accounts in QuickBooks Online

To set up chart of accounts in QuickBooks Online you need to follow the below steps given in the sections, these procedures will help you to manage the chart of accounts in QuickBooks Online perfectly.

How to Add a New Account to the Chart of Accounts in QuickBooks Online

To add a new account to the chart of accounts in QuickBooks Online, you need to follow the steps:

  • First, you need to go to Settings, and then click on the option of Chart of Accounts.
  • Click on the option of “New” to create a new account.
  • Go to the dropdown menu in the Account Type, and then select an account type.
  • Go to the Detail Type dropdown, and then click on the option of detail type that best fits the types of transactions that you want to track.
  • After that, you need to give your new account a name. That you can use the info under the detail type to add a name that fits.
  • Then, you need to add a description related to it.
  • Click on the option of Is sub-account if you are adding a sub-account, and then enter the parent account.
  • After that, you need to choose when you want to start tracking the money from the ▼ dropdown. And then follow these given statements:-
    • You need to select Today if the account you are tracking is brand new as of today.
  • Enter the balance in the account as of today in the Account Balance field. 
  • If you started the account on another date, then you need to click on the option of Other. In this situation, you need to select a date field, and then enter the date you want to start tracking money in the account in QuickBooks. In the Account Balance field, you can enter the balance of the account for the date you choose.
  • And finally, you can click on the option of Save and Close.

How to Edit Chart of Accounts in QuickBooks Online

To edit chart of accounts in QuickBooks Online, you have to follow some steps:

Accounts from the Chart of Accounts can be edited. That means you can change an account name, create sub-accounts, delete accounts, and create new accounts. Let’s start with something simple, such as editing a chart of account.

In the Chart of Accounts:

  • First of all, click on the ‘+Menu’, and select the ‘Expense’ option.
  • After that, click on the ‘Choose Payee’ option, and select on the ‘Payee’ option.
  • Now you need to enter the payment date and method for the transaction.
  • From the ‘Account Details’ section, and choose an account name.
  • Click on the ‘+Add New’ option and then on the ‘Account Details’, if in case you are unable to see the account details.
  • After that, customize the account details.

How to Delete an Account From a Chart Of Account in QuickBooks Online

  • Click the account name that you want to delete. 
  • Go on the right side of the account name, and then select the drop-down menu, next to click on the option of Run Report
  • From the drop-down menu, and then click on the option of Delete.

The account has not actually been deleted, but marked inactive, meaning that you can restore it at a later time.

Note: If you want to see an account that you deleted, then follow these steps:-

  • Select the Gear Icon.
  • Check the “Include Inactive” box.

You will see a list of all the accounts, including those which have been deleted.

Add an Account when Recording a Transaction

You can also add accounts when recording checks, bills, or other transactions. When you are in an open form, select in the Category column, then click the + Add New option.

If you Added a New Bank Account

If you connect your bank accounts to online banking, QuickBooks automatically downloads and categorizes your bank and credit card transactions for you. Then you just have to approve the work.

If you See a Usage Limit Message

This means you have reached the maximum number of accounts you can add with your QuickBooks plan. If you have accounts you no longer use, make them inactive so you can add more.

Conclusion

Hope you will understand how to set up Chart of Accounts in QuickBooks Online. If in case, you are unable to set up the chart of accounts then, don’t worry, you can get our ProAdvisor support through the toll-free number +1-888-461-1179 at any time and anywhere.

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How to Set Up Chart of Accounts in QuickBooks Online