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QuickBooks has provided services for hundreds of clients. QuickBooks chart of accounts is being neglected most of the time and sometimes categories are run that are not required. These are not organized and this makes financial reports coming out of the system absolutely useless to read. However, there are some ways the user can optimize the QuickBooks chart of accounts:
1) Prevent over using the default options:
Default QuickBooks chart of accounts provides you with a canned set of reports based on the industry you choose. This can be considered as a helpful starting point. But it is possible for the user to customize it further to reflect on the uniqueness of their business. What could be the major revenue sources and cost drivers? Some of them include creating the accounts for the bank, credit card and loan accounts, as well as any other asset or liability accounts. These are the line items the user should see on his income statement.
The user should go through the default chart of accounts, add any new accounts they might need. Also, remember to modify the names of some of the accounts already there. You may simply delete the ones they don’t find valuable.
2) Organizing and Sorting: Optimize your QuickBooks Chart of Accounts
Ideally, the default QuickBooks chart of accounts will list the accounts in alphabetical order. This means that an account which is having limited annual expense activity, such as the “Dues and Subscriptions” would view near the top of the Income Statement. On the other hand, the major expense account such as “Salaries” will view near the bottom. The user needs to re-order this chart to make sure it’s accurately reflecting the priorities. Put the most meaningful income and expense accounts at the top. In QuickBooks Desktop, the user has the option to simply drag and move the accounts. However, QuickBooks Online will not allow to re-order accounts outside of alphabetical order unless the account numbers are used as a way of prioritizing the order. In the case of using QuickBooks Online, the use of account numbers is suggested.
If the user needs any help about organizing and sorting, they can reach out to the QuickBooks experts’ team who are reliable and will help the user in understanding about QuickBooks. QuickBooks Enterprise support phone number is +1-805-257-5030.
3) Take Advantage of Parent and Subaccounts:
The user should also use parent and subaccounts. This allows them to see the business results in the most useful manner. This will make it hard for the user, as the business owner, and also might make it difficult to quickly get a pulse on how the business is performing. The advantage of parent accounts is that it allows the users to run a “Collapsed” or “Expanded” report. Additionally, you can review the summary of the performance of the business and get at the details, which gives out the best results.
4) Use additional categorization tags:
Many clients try to use the QuickBooks chart of accounts because not only do they want to analyze their overall business but also want to see project profitability, cost center performance, etc. Keeping the chart of accounts simple, and instead, use the additional dimensions of “Classes”, “Customer: Jobs”, and in QuickBooks Online, “Locations”, to add these additional categorization tags to your income and expense transactions. This helps to produce a clean, summary-level income statement as well as additional reports used to analyze these different aspects of your business.
If the user needs to know more about optimizing the chart of account in QuickBooks, they can know better about it by contacting the QuickBooks Enterprise Technical Support number who are having expertise regarding this particular subject and are very reliable. They are always there to help and can be reached out anytime at this number: +1-805-257-5030.
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