Customize your Chart of Accounts in QBO - Best Practices from a CFO
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- เผยแพร่เมื่อ 25 ก.ย. 2024
- Need to get QBO set up for your business? Save money & grab a 12 month discount here: claracfo.com/QBO
Grab your FREE Chart of Accounts Example here: claracfo.podia...
This chart of accounts example is in QBO. Need to get QBO set up for your business? Save money & grab a 12 month discount here: claracfo.com/QBO
What is the chart of accounts? It's the LIST of available categories you can put your transactions in an accounting system. It is like your FILE FOLDER names for your accounting data.
Why does the chart of accounts matter? Because it can make your bookkeeping much easier and more understandable. But more importantly....it can make your financial statements so much more helpful to you as a business owner!
Find more resources for your small business HERE: learn.claracfo....
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Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at claracfo.com/
Disclaimer: This video is intended for educational purposes and
should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.
Thank you for the inspiration you have given me. I am a 62-year-old woman looking to change careers. Accounting it is! Thank you! Thank you! Thank you!
You can do it!
Thanks! As a fellow TH-camr, I appreciate you sharing your knowledge. I'm just coming back to Quick Books after years of doing it manually. I had been a QB user back when it was software you purchased. I quit then because their support was horrible. Yesterday, I signed up for QBO and have had a great experience. Their support now is awesome. What a difference. I'm learning a lot from you... just wanted to say thanks. Now on to cleaning up my chart of accounts. :)
Thank you so much for your support! Love what you are doing on your channel too! QB support has been my major complaint about them in the past - I am SOOO happy to hear that your experience has been better!
Hey I just wanted to say thank you so much for this and for linking to your free chart of accounts. Using that to adjust my quickbooks accounts has been the most helpful thing I've ever done accounting wise. Thank You!!
Hello Clara:
In case you already have a Chart of Accounts for years (have its have balances in BS) and you want to update with a new Chart of accounts,
For example, a Franchise that wants to do it the same for all of them, can I import? Is there a way? or you have to change it one by one,
Is there any video of yours that explains it?
Thank you for everything, you help a lot by transmitting your knowledge.
thank you very much!!! Manuel Melian
A series on budgeting for non-profits might be cool. When you think about CoA for business, it feels conceptually skewed in the context of NPO.
Thanks for the suggestion, but we don't serve non-profit clients, so we probably aren't the right people to show this!
Just signed up for QBO using your website! Thank you for sharing your knowledge with us. Much appreciated.
Thanks for using the link! Check out this playlist for more videos to help support you in using QBO: th-cam.com/play/PLUcXTCG4ArAlATaIlyGPM94PEs_icwSFb.html
Thank you very much, Clara! Your content is very important to me. I'm a Brazilian accountant who's trying not to give up on accounting. I'm looking more and more into bookkeeping.
Thanks a lot, Clara! Some of the instructions I've received in the past (from others) don't use the account numbering system and some do. You do a great job in explaining it all. You seems like an excellent teacher and you are very clear. Thanks again!
This is by far, the most helpful video that I've seen for Chart of Accounts. Also, thank you for the free download!
So glad it is helpful! A good chart of accounts makes me smile :D
I just started a small business. I have been looking at TH-cam videos on QBO. As a non-bookkeeping person there are some BORING videos on QBO. I was so dreading the financial part of the business. Your videos are just what I need. Thank you so much for sharing your knowledge. I had no idea how to set up the chart of accounts. So dreading how to even start. Thank you for sharing the Excel sheet to get me started. If I had not already signed up for QBO I would have used your affiliate link. Being a non-bookeeping person I can't absorb stuff on accounting that is more than an hour. Thanks for keeping them short and sweet.
Thanks for watching! I try to explain things in plain english instead of accountant-ese. Glad it could help!
I just trained a CFO of an organization in Nepal how to operate the QB online plus. It is not difficult if people has accounting background.
Clara, thank you so much for this video! I've been searching for a way to standardize the numbering of my chart of accounts forever and this template that you give out is the best thing that ever happened! Thank you so much!
wow - so glad I could help!
Thanks for the information in this video, and also the free download! Would you consider doing QBO videos specifically for non-profits, such as a church? Thanks!
Thanks Clara-I prefer using acct numbering-it does make sure like things are grouped in the COA
Thank you so much! I have the download! This will be a great resource in getting started as this is all NEW to me!!
Hi Hanna can you please type in the link where we can download the chart of accounts that you had discussed. Thanks
Here you go!
learn.claracfo.com/example-chart-of-accounts
Thank you! Fantastic resource and very easy to understand. 💕
Glad it was helpful!
Thank you soo much for this video! It was sooo helpful! I have a question. For the Chart of Accounts Spreadsheet, how do we get in the numbers into QBO? Is this something that is manual or is there a way to upload directly to once you have completed customizing it? Thanks so much!
Thank you very helpful and the copy of the chart of account is great.
So glad it was helpful!
Thank you again. Absolutely helpful, and similar to what I was doing. Beautiful!!
Great!
I signed on to your website but was unable to download the free chart of accounts. Why?
Thank you for this video. I'm interested in learning how to customize chart of accounts for a non-profit organization. Do you have a tutorial on that?
very helpful!! Thank you so much!! Quick question: what is the best way to categorize an Owner's Distribution?
owner's distributions are an equity account - this comment inspired my next video - coming out this week!
@@ClaraCFO awesome! Looking forward to seeing it.
Hi Clara, can you please me understand the payroll tax accounts. What is the difference between the liability and expense accounts and which should I be using when setting up the tax, cpp and Ei.
You probably have this figured out by now since your question is 3 months old. But I see a lot of people ask about payroll tax liabilities and expenses. Payroll tax liabilities are created when you run payroll and the amounts are withheld from employees’ gross wages. They will accrue in the Liabilities accounts until it is time to pay them. For example, an employee’s total pay is $100 but they only get $69 in their check. The other $31 will be in LIABILITY accounts (FICA, FUTA, SUTA, Federal and State Income, etc.) (Maybe also in health premiums payable or 401K payable). THEN…when the time comes to pay them, that is when you zero out the liabilities and they become expenses.
how did I find you!!! thank you. We're dog breeders, website developers, health care providers but not acountants. I need these skills. Thank you again!
Could you please explain, is there a difference in how the Accountant QuickBooks interface looks and how it looks "regular" ? As I understand, in all your videos, you are showing when a business is doing its own bookkeeping? Thank you.
Great for initial set-up but how do you change the order of things in the COA for an "existing" business?
Great video on how to properly set up chart of accounts. My question is that if a company started using chart of accounts without the account numbers, once updated with numbers, will the number automatically show on the P&L and Balance sheet as well as journals? Thank you
I want to learn a little more to be able to do my own accounting and be organized you explain the way I can understand but now sure how to start
Clear and accessible explanations, thank you so much.
I am a Real Estate Broker I am having a hard time setting up my expenses under subcatagories.
This his helping.
Great!
I wish my school taught this in accounting. But my HR said Quickbooks really needs to be accounting. It's more just keeping data.
I agree - See my comment on your other comment!
New to quick books. So I’m still in the process of setting things up. My question is I need to add my workman’s comp insurance information. But I haven’t found where I can add that info just how I can purchase it. Any help would be greatly appreciated!
Will you do a video on setting up multiple businesses in QBO?
Not this time since my QBO series is wrapping up. Best practice is to do a separate QB file for each company, but it could be accomplished with some work-arounds.
You did it again!!! Clara this is another great video. Thank you for your help, I appreciate it very much, and I wonder if you have any videos for chargebacks I am not sure if they are treated as credits, I am not sure. Could you please upload something like that?
Hi! I would like to know how to change a customer/vendor's credit card information, please.
You need to go to the customer or vendor section of QBO, find the customer/vendor and then click "edit" this will bring up a way to change a stored payment method.
Love the resource! love your website! enjoyed this video! got my copy of the COA. thank you for sharing❤🦋
Yay! Thank you, so glad I could help!
Thank you. This was very helpful. You mentioned we could use your chart of accounts but I don't see where I can go to download. Can you provide a link?
Here you go! learn.claracfo.com/example-chart-of-accounts
You could explain the fed and monetary system pretty good
What if you have several different businesses? What is the best way to keep track of them all separately?
This was so helpful, thank you very much
Glad it was helpful!
This is great information Hannah!!! Do you recommend each product be a different line-item number? also as an accountant/bookkeeper to put the services you offer as a sale of product or service/fee in the detail type? Thank you for all your knowledge.
Hi Eric, No, I would not put a separate revenue line item for each product. Instead, I would match your individual products to revenue lines that match to product lines. I did a video on that here: th-cam.com/video/wzk-BNvKqSw/w-d-xo.html. I usually match service revenue to the service/fee detail type, but it really doesn't matter!
@@ClaraCFO Awesome Thank you so much for the info.
How do I get a download of the sample chart of accounts? Thank you video was very helpful.
Thank you for the great information Clara. Your content is helping me so much. It is definitely clarifying so many questions and confusion I been having for sometime already. By any chance do you have a video showing what is the task for a bookkeeper, or What will be the most important things to focus on daily basis. I was scrolling down to your videos and didn’t find one, maybe I miss it. Thank you again. 😊
Thanks so much! This was so helpful! Love your videos!
You are so welcome! Thanks for watching!
Good info. But just saw this. If I make i.e "Sales" a number of i.e. 2000. Then in the P/L the report shows as "2000 Sales"
Kinda dumb. Why would it incl a category number???!!
Question: revamping my COA's will this affect my previous year books. I have been using QB's for a few years and would like to Move some expenses to COGS and correct some tax lines. Thanks for the video!!
Timely video as I started to think about this in QBO. 😉
The one thing I couldn't find is how to manage/maintain "Detail Type"..
Thoughts? 🤔
HI Clara, how do you categorize if you provide water and ice or soft drink for employees (landscape) or sometimes meals when the job is far away?
So we use the account numbers to determine the order of accounts on our Balance Sheet. How do I remove the account numbers from my formal report?
Hi Clara! Thank you so much for your videos! They have been great help doing my own accounting for my business. What do you suggest (chart of accounts) on monthly car payments? TIA
You have been so helpful. Thank you so much for all the information
You are so welcome, happy to help! Thanks for watching!
Setting up a Chart of Account for a new variety store. need some guidance. thank you
Hi Angela, you may want to do a consultation with a bookkeeper to help set up a chart of accounts that's customized to your activity in your business. It will be important to think about what type of sales you will have and how you want to track them (do you want to track based on catagory of items?) You will also definitely want to track your cost of goods sold. This might be a helpful video for you as well: th-cam.com/video/g9c16URmMxY/w-d-xo.html
Do you have any videos on how to setup inventory and COGS? We have a handmade biz and inventory flat out sucks. We have so many bits and bobs that go together to make any one of our final products.
How much is charged to start an account or how many clients can we add to quick books
Thank you for this! We are going from an outdated QB desktop that can't be updated for a non profit. We are using labels. Do you have a video for that?
how do I download you example of the chart of accounts thank you
Here you go: claracfo.podia.com/example-chart-of-accounts
Great video, thanks for posting this information. The detail types that are already in the chart of accounts don't really fit what I am needing for the agriculture business I have, is there a way to edit the pre-existing ones or add my own?
can't download chart of accounts file , field email is not working properly
Maybe try again? claracfo.podia.com/example-chart-of-accounts
Hi. Wondering if I can export all my business charts of accounts and employee info into my employees new company. She is buying my business but needs to have here balances and tax accounts at zero to begin her business. Would be soooo much easier than having to create all new accounts for her QB company. We are still using desktop at this point. Thank you!!!
Clara I'm a new subscriber so add to your 20% : ) The videos I've watched so far have been great! Thank you for doing these. Being a little naive, I'm not seeing where or how I download the excel spreadsheet for chart of accounts?
Thanks! Here you go: learn.claracfo.com/example-chart-of-accounts
Hi, I downloaded the COA, is there a reason that account 5300 Sales Discounts is Typed as Income? or is it a mistake. Thank you.
How would I list in the chart of accounts a repayable cash/check loan for funding/expenses from a person or business?
Thank you so much for this information. Very helpful.
So glad! Thanks for watching!
Hello, Thank you so much for this video. Any chance you have a video for setting up a chart of account for a Mental Health Private practice?
Hi Clara how can we download that excel spreadsheet with the numbered chart of accounts?
If you go to the description box, It is the second link!
Thanks Clara. Question for you - is it really hard to change the standard COA to your format after a few months of categorizing? Wondering how much work /time it will take to number everything and if that means recategorizing?
Why is there no option under Accounts Receivable to report a contra account - allowance for doubtful accounts
Good question....probably because most users aren't doing accounting to that level. I'd create an account under the accounts receivable account type and rename it to "allowance for doubtful accounts" and then just book your JEs accordingly.
Hello, some people do not like to use account number, as he/she said it is enough to have the account name. Another thing is to create the account number I need to think what are number that need to be in serie i.e account number 10000 Cash in Bank and Cash on Hand. This is the parent account. When I need to create some sub of this account, i.e Cash in Bank A, so I have to create the sub account number i.e 11000. Is it correct?
Hi Clara, Great Video. Thanks for sharing.
Could you please make a video on Payroll Accounting (Setting up GLs, recording and reconciling Payroll). FYI- we use PayCom for payroll processing. Thank you in advance!
Great suggestion! I will add that to the list of things to work into the calendar!
Can you start QBO in the middle of the year or first of the year?
Would you happen to have some kind of paperwork that lists different chart of accounts in Quickbooks and when to use them? I have no accounting knowledge, and want to make sure I am categorizing all of my transactions in the right places for accurate P&L reports
Hi Clara! Thank you for your help with Chart of Accounts info. I'm trying to find the free download you offered. I am having no luck. I subscribed and liked your video, but I need to know where that Chart of Account download id.
Thank You!
Great day, Clara. I would like to thank you for your great content. My question is, how do you set up a chart of accounts for holding company?
Where do I get the table?
Noticed that you you jumped from 1000 to 1100 from cash on hand to bank accounts, is there a reason for that?
Excellent video Clara. is helping me a lot. Thanks
Clara, I am new to quickbooks and my partner did something I can't figure out how to fix? We have our business checking account and business Amex linked to our quickbooks. The business Amex is in his name and also linked to his personal account. He moved money from the business checking to his personal checking and then paid the credit card from his personal checking account? Now all the credit card payments have a description of mobile thank you and a category of Transfer from uncategorized asset. How do I record these???
Would you follow this same numbering scheme if you wanted departments (eg R&D, Sales, Marketing, G&A etc) thanks. Very helpful video
Hi, same comment as Donna Bennett, is the chart of accounts download available? Very helpful video.
Yes! It's here: claracfo.podia.com/example-chart-of-accounts
Could you offer a alternative download option so that it would be easier to download for people who do not use microsoft office?
Thanks for all the videos you uploaded. I used to use QB daily, but have been out of the workforce for over 10 years and now I'm trying to find an accounting job again by learning a newer version of QBO. I downloaded the chart of accounts and noticed that #8800 Depreciation was under Taxes. Shouldn't it normally be above Taxes? I guess it's just a typo, isn't it?
I am a homeowner association. no inventory. monthly dues.... thats our income. do i have to invoice every unit individually monthly to make a deposit?
Hi Clara. I really love your videos! I am brand new to QBO and I am trying to start my own bookkeeping business. I'm so confused. What is the fastest way to learn enough to start taking simple service based clients? I am getting overwhelmed with so many words and not actually learning.
Thank you, Clara, my question is how do you change or edit standard chart of accounts
for the Church. I have a number system for income, assets, liability, and expenses.
edit or new doesn't work. spent many hours.
Hi Vaness - what version of QBO are you using? Also, I wonder if you've been given limited permissions?
Hi, Currently using QB premier, is it possible to run a chart of accounts by date? Thanks
Is there a difference in set up with a sole proprietor and Scorp? What do you need to have if you are an Scorp?
Only in the Equity section.
The chart of Accounts spreadsheet link is dead??? Is it no longer available?
It's still available! learn.claracfo.com/example-chart-of-accounts
How would this apply for QBSE? Or is that totally different set up system? Since your example was a landscaper (likely SE), I wondered if same applies to QBSE? Thanks, info was insightful, good to see someone excited about graphs, charts, numbers. :)
I don't work in QBSE at all. I think there's not a lot of customization in that system. Sorry I can't give you a clear answer!
I'm definitely nerdy about charts/graphs/numbers :D
I added and categorized some of my matches so I do have duplicates which I know will mess up my P&L can I delete one and would I do it from register. Thank You so much
I'm helping out an aviation clean his books but it's my first time use qb. Do you think you can help me customize his chart of accounts?
Thanks a lot . I really needed this.
Awesome! Glad it helped!
Can we change the detail type, if so how?
I have receipts saved from a phone app called Genius Scan - they are a PDF format - can QBO accept PDF copies to track expenses? Or do I need to capture the original receipt in QBO? I am just getting set up with QBO through your discount and need to go back to update everything for taxes for 2022. I am an insurance agent so a pretty simple bookkeeping of income and expenses.
Hello Clara, I started my business March 2023 and would like to start quick book from March. How can I pull in the bank or the credit card to start from March instead of now when I am just starting the book keeping?
When you sync up the account with the bank, it will ask you how far back you want to go back!
thank you@@ClaraCFO
Thanks from a newbee!
Newbies welcomed here!
Hello there! I'm new to Canada and I've taken some QuickBooks training by watching videos. However, I've noticed that many job positions in bookkeeping require experience, which I don't have. I'm wondering how I can start my career in this field despite my lack of experience. Any advice would be greatly appreciated. Thanks!
I'm always surprised when I see that some people don't use account numbers. To me, it feels a lot more structured to have them.
Totally agree! But sometimes people just don’t know that there is another way!
Thanks great video I’ve learned a lot
So good. Account numbers. I’m learning. Thank you. Now I only have (7) accounts that seem to be being used. My (5) bank accounts that are linked to the bank, (1) account I created called petty cash cause I needed to keep track of cash I am carrying around and (1) more account my CPA created called “Owner Draws” that contains all the transactions where I was depositing money from my W2 income to fund the business. All these other accounts that you give an example of seem to be what I use as categories. So I’m a little confused as to what to do. Should I stop using categories and start creating accounts in my chart of accounts to categorize income and expenses?
Yes, QBO uses the term “categorize” meaning to assign an account.
Hi, I don't see the free down load for the sample chart of accounts?
here you go: learn.claracfo.com/example-chart-of-accounts