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Additional types of QuickBooks accounts

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.

Account name

What it does

Accounts Receivable

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 company.

Accounts Payable

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.

Undeposited Funds

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.

Retained Earnings

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.

Payroll liabilities

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.

Payroll expenses

Tracks payroll 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.

KB ID# H_SETUP_INFO_ONBOARDING_DEFAULT_ACCOUNTS_IN_QB
12/7/2016 6:24:36 AM
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