When should I add a new account?
You add new accounts as your business grows and changes. For example, you
may need to add one or more of the following accounts:
Income accounts to track new sources of income
Expense accounts to track new types of expenses
Bank accounts when you open new checking, savings, or money market accounts
at your bank
Credit card accounts when you acquire new credit cards
Other kinds of balance sheet accounts to track specific assets, liabilities,
For example, you may need to add a fixed asset account to track the
depreciation of a new equipment purchase, a long term liability account to
track a business loan, or an equity account to track the investment from a new
What information do I need to add an account?
When you add a new account, have the following information on hand:
All bank statements (checking, savings, credit card, etc.) ending on or shortly before your start date.
All transactions for your bank accounts that were not recorded (cleared) as of your start date.
Value of your assets, liabilities, credit cards, and other accounts as of your start date. If you have an accountant, he or she
can provide you with this information on a balance sheet.
Customer names and the amount owed to you as of your start date.
Vendor names and the amount you owed to those vendors as of your start date.
All historical transactions (checks, invoices, etc.) made since your start date through today.
What if I use a credit card account for both business and personal expenses?
It's recommended that you keep a separate credit card for your business
expenses. If you have a business credit card that you occasionally use for
personal expenses, set up an account for it in QuickBooks. Do not set up a
QuickBooks account for a personal credit card that you sometimes use for
business. In either case, you'll need to
set up a special account to
track your "mixed" purchases.
To do this task
Go to the Lists menu and click Chart of Accounts.
Click Account at the bottom of the list and then click New.
Click the type of account you want to add.
Information about the account type displays in the right side of the window.
Click More to see more information about the selected account type.
When you are ready to add the new account, click Continue.
(Optional) If QuickBooks can suggest one or more accounts that you might want to add, the Select from Examples button is active. To see the accounts, click Select from Examples.
In the Account Name field, enter the name of the account.
If you use account numbers, enter the account's number in the Number field.
Example of standard account numbers
Although you aren't required to
use account numbers in your
chart of accounts in QuickBooks, your accountant may recommend that you do so.
Here are standard chart of accounts number ranges:
What if there is no Number field?
(Optional) Enter a short description of the account in the Description field.
(For bank or credit card accounts) Enter a bank or credit card number for this account.
(Optional) To make this account a subaccount, select the Subaccount
of checkbox and then click the drop-down arrow to select the account under which this account will be added.
Why use subaccounts?
(For income and expense accounts) Click the Tax Line drop-down
list and choose the appropriate tax line, or choose .
Why should I select a tax line?
How do I select a tax line?
If you're a sole proprietor who files a Schedule C, and you have a main revenue or sales account, choose the Sch C: Gross
receipts or sales tax line.
Keep in mind that the business tax lines closely approximate categories that most businesses use.
To avoid duplication in your income tax reports, don't associate both the parent account and the subaccounts to tax lines.
Associate only the subaccounts to tax lines, as this will provide you with more detail in your reports.
Restriction regarding balance sheet
What if the list of tax lines is missing?
If the Enter Opening Balance button displays, you can enter the opening balance for the account.
Enter the opening balance for the account
(For balance sheet accounts) Enter an opening balance based on
the account's balance as of your QuickBooks start date. If
you're not sure of the balance, you can leave the field blank
and enter the information later.
If the account is new
Important: If the account is new, leave the opening balance at zero.
Its opening balance will be created when you transfer funds from the
appropriate account to fund this account.
For example, if you create a new savings account using $500 from your
checking account, enter a check for $500 and assign the transaction to the new
savings account in the detail area of the check.
If the account is an A/R or A/P account
If the account is an Accounts Receivable (A/R) account or an Accounts
Payable (A/P) account, QuickBooks does not ask for an opening balance. Instead,
you enter an opening balance for each individual customer or vendor when you
set up their records in QuickBooks.
Entering opening balances for
customers and vendors
(For expense accounts only) To track reimbursed expenses as income, select
the Track reimbursed expenses in: option, click
the Income Account drop-down list, and then choose
the appropriate income account. If this option is not visible, you must
reset your preferences for sales and customers.
Set preferences for sales and customers
Click Next to save the account and enter another one.
Click OK to save the account and close the window.
Deciding which type of account to
Using account tax
balance for a sales tax liability account
balances for income and expense accounts