According to a study, 80% of businesses use QuickBooks as an accounting software. Therefore, the entire structure of the charts of accounts is quite critical. So, for optimizing the feature in a better way, you should go through some tips listed below. Do get in touch with the QuickBooks Payroll Support team for resolving queries pertaining to payroll management.
Don’t Follow the Default Chart
While the default chart of accounts in QuickBooks usually provides a set of reports, you should customize the reports in order to give a snapshot of the business. As you move ahead in creating accounts, you should be aware of the income sources that should be clearly visible in the income statement. Therefore, as you go through the default chart of accounts, you can add new accounts, change the QuickBooks account names, and simply delete the ones which aren’t valuable.
Even though the default chart of accounts displays a list of accounts in the alphabetical order, it’s essential to re-order the chart all by yourself. This would help you to keep priorities like expense and income accounts on top of the list. If you are using QuickBooks desktop, then you can change the order by dragging and dropping the accounts. In case of QuickBooks online, you can alter the order with the help of account numbers.
Use Parent and Sub-Accounts
Synonymous with prioritizing categories, the parent and sub-accounts can be used to check out results. For instance, if you have a parent account by the name, ‘Facilities Expenses’ then you can take the advantage of sub-accounts like ‘Cleaning Expenses’, Utilities’, ‘Rent Expenses’, etc.. Without using the parent account, every sub-account has the same priority depending on the income statement which helps you generate the desired report. On the other hand, the parent QuickBooks accounts help you roll out reports with the ‘Collapsed’ or ‘Expanded’ option. You would not only able to view a summary but also get an idea of the details.
Use Classes and Customer: Jobs
It’s always a good idea to keep the chart of accounts simple. Additional dimensions like ‘Classes’ and ‘Customer: Jobs’ serve as tags for an income statement as well as reports that help to analyze the business. In case you can come up with the list, then you should contact the firm which offered you the QuickBooks accounting software. As you coordinate, you can fetch the best from the reporting results.
Never Guess Anything
When it comes to maintaining accounts, ensure that the transactions are coded properly. Do make sure that the individual has thoroughly understood the ways in which the chart of accounts is used. If the need arises, the individual should also know the class list and how the project expenses can be categorized. Set up an ‘Ask an Accountant’ account in case you need to verify transactions and the places where they should be coded. As far as the closing balance is concerned, you shouldn’t forget to review the account and re-categorize the expenses in your style. Give us a buzz on the QuickBooks Support Phone Number, in case you are facing issues related to managing the accounts.
If you are keen on learning some more tips, then seek advice through consultation. Once the data is reviewed, the expert would able to help you out on how you can use the chart of QuickBooks accounts. After all, organizing data is important to you and your business.