Dating journal entry quickbooks
Let’s think positively and use the example that your business is doing so well you have opened a new money market account with your bank.You know you need to create a new bank account in Quick Books so that you can reconcile your banking activity with your financial institution’s records.Creating a New Account To practice adding a new account record, open the sample data file as instructed in Chapter 1.If you are working in your own file, use these instructions to create a new bank (or other type of account) in your chart of accounts: This dialog box also enables you to request a reminder to order checks when you reach a specific check number or order checks directly from Intuit.This list is one of the most important lists you will use in Quick Books; it helps you keep your financial information organized.When this list is created with summary accounts and you use the other list types for detail, you can capture information in a timely manner, which will help you make good financial and management decisions for the business.Understanding the chart of accounts isn’t complicated.
It might already exist if you created your file with the Express Start discussed in Chapter 1, “Getting Started with Quick Books.” What becomes problematic for some is how to efficiently use each of the available list types when you want to segment the business reporting activity in Quick Books. The chart of accounts is a list of asset, liability, equity, income, and expense accounts to which you assign your daily transactions.By contrast, your office expenses for rent or advertising are considered indirect and should not be posted to the Cost of Goods Sold account type.TIP When you are creating your Cost of Goods Sold accounts, consider using summary accounts, such as material, labor, and subcontract, and letting your Item List track more detail.Reports by item are available to break down the total of Cost of Goods Sold account into more detail.An expense is recorded when an asset is used or there is an outflow of cash.
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Interest Income is an example of an Other Income account type.