In this video we'll explain how (and why) to setup a simple, but useful chart of accounts in Quickbooks. A simple chart of accounts can really improve the accuracy of your numbers, and we can use some other tools, like Service Items, to drill into the details.
And as an added bonus... check out this article's attachment files to download a sample chart of accounts and an import file you could use to setup a chart of accounts in a new Quickbooks company file!!
In this video you will learn:
- The different types of Quickbooks accounts (revenue/sales, cost of goods sold, operating expense accounts)
- Why most contractors don't/can't use their Quickbooks numbers to help them understand their business
- What belongs in overhead (expenses) and what belongs in cost of goods sold (job costs)
- Why keeping it simple is better
- How transactions use service items, and how service items use your chart of accounts
This article, video and sample account list are meant for educational purposes only. LMN strongly recommends you consult a financial professional before making any changes to your Quickbooks company file.