QuickBooks uses accounts to manage income information about
QuickBooks uses income accounts (you can think of these as folders)
to categorize money coming in to your company.
If you're familiar with Quicken, QuickBooks income accounts work like Quicken
How does QuickBooks use accounts to categorize income?
Each product or service that you sell is represented as an item in QuickBooks.
When you create an item, you associate
it with an income account.
Each time you make a sale, you create an invoice or sales receipt (sales
form) that includes the items that you sold and the amount you sold them for.
QuickBooks increases the balance in the appropriate income account to
correspond to the value of the item(s) sold.
Why should I use QuickBooks to track income?
By accurately categorizing your income, you can track and generate reports
about how your company is making its money.
Each product or service you sell in QuickBooks is represented by an item.
Each item is associated with an income account.
Each time you make a sale, you create an invoice or sales receipt (sales form)
that includes the items that you sold and the amount you sold them for.
When you receive payment for the item...
...QuickBooks increases the Income account that corresponds to the item sold.
How are income accounts used in reports?
By managing your finances with the right accounts, you can prepare detailed
and accurate reports about your business. These reports let you see how
and why you are making—or not making—money. This information gives you
insight into potential ways to increase your bottom line.
Adding new accounts
Understanding expense accounts