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Understanding QuickBooks income accounts

income accounts

QuickBooks uses accounts to manage income information about your company. 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 categories.

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.

Show me an example in QuickBooks

  1. Each product or service you sell in QuickBooks is represented by an item. Each item is associated with an income account.

  2. 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.

  3. When you receive payment for the item...

  4. ...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.

See also

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