QuickBooks adds these accounts to your new QuickBooks company. QuickBooks creates
some of these accounts (such as Accounts Receivable) immediately. QuickBooks
creates the other accounts (such as Sales Tax Payable and GST/PST Payable and Undeposited Funds)
the first time you need them.
What it does
Tracks the transactions between you and your customers, including invoices,
payments from customers, deposits of payments, refunds, and credit memos. The
balance of this account is the total that your customers currently owe your
Tracks the transactions between you and your vendors, including bills,
payments to vendors, refunds, and credit from vendors. The balance of this
account is the total amount your company owes to vendors.
Open Bal Equity
Tracks the opening balances of your other balance sheet accounts. QuickBooks
creates this account to ensure that you get an accurate balance sheet
when you set up a new company.
Holds customer payments you've collected that you haven't yet
deposited into the bank. The balance of this account is the total amount of
funds you have to deposit.
Tracks profits from earlier periods that have not been distributed to the
owners of your company. QuickBooks automatically transfers net income into this
account at the beginning of a new fiscal year.
Tracks taxes that you deduct from employees' paychecks and hold
temporarily until you turn them over to the government. These include federal
and state income withholding taxes, local taxes, and the employee-paid portion
of taxes such as Social Security and Medicare.
items that are an expense to your company. These include salaries, wages,
bonuses, commissions, company contributions such as a company-paid health plan,
and the company-paid portion of taxes such as Social Security and Medicare.