Lesson 1-8: During the installation of QuickBooks Pro 2013, QuickBooks recommended several accounts to be listed in your chart of accounts. During that time, you had the option of selecting or deselecting the accounts that fit your business needs. When you selected the accounts that fit your particular business, QuickBooks automatically assigned account numbers according to its default numbering system, and that default numbering system is as follows:
|QuickBooks’ Default Numbering System|
|Revenue / Sales||40000s|
|Cost of Goods Sold||50000s|
Some of the accounts that were selected during the initial installation were Auto and Truck Expenses (Account Number 60,100), Interest Expense (Account Number 63,400), Members Equity (Account Number 32,000) and Payroll Liabilities (Account Number 24,000). QuickBooks automatically assigned account numbers according to its default numbering system. The picture below shows the chart of accounts and the account numbers that were assigned when the company file was created.
Now we will look at expanding the chart of accounts by adding a new account. For beginners, the most difficult part when creating a new account is determining the account type. Will it be an asset, liability, expense, revenue, etc.? You must be able to determine the account type prior to creating the account. Please contact me if you have questions on doing that.
1. Before we begin, make sure that QuickBooks is set to display account numbers. To do this, click the edit menu, then click preferences.
2. In the preferences dialog box, select “Accounting” on the left side, then select the “Company Preferences” tab, then click the box next to “Use Account Numbers” and make sure that there is a checkmark in the box.
3. From the QuickBooks home page, select “Chart of Accounts.”
4. Click “Account” at the lower left corner, then select “New.”
5. Select the correct account type and for this example, we will choose an expense account.
6. Type the name of the account in the Account Name field. The name of the account that we will create is Gasoline. After you type in the name, create an account number. As stated previously, QuickBooks’ default numbering system dictates that the expense account range is between 60,000 – 69,999. I will choose account number 60,200. Type your account number in the Number field. When complete, click the Save and Close button on the lower right hand corner.
7. The account has been created and is listed in the Chart Of Accounts.