When you use the Easy Step Interview to make a replacement QuickBooks company file, you’ll be asked questions on the sort of business you own because it walks you thru the method of fixing your business in QuickBooks. Your answers are going to be wont to assist you start quickly, by fixing the acceptable accounts and lists. it’ll take you about half-hour to travel through the Easy Step Interview.
Creating a replacement company enter QuickBooks is straightforward and you’ll access the new file wizard in some ways.
- From the File menu, choose New Company
- If you’ve got been working during a sample company file, click the beginning your new company file now button on the upper right corner of the house page.
- From the No Company Open window (when you initially start QuickBooks), click the Create a replacement Company button
Any of those actions will launch the Easy Step Interview, which can walk you thru the creation of you knew company file by asking you a series of questions on the sort of business you own. It uses your answers to urge you started quickly, by fixing the acceptable accounts and lists.
The following may be a list of the accounts that QuickBooks creates automatically, if you chose the development General Contractor business type within the Easy Step Interview and indicated that your company is an S-Corporation.
- Accounts Receivable – Created during the Easy Step Interview, or the primary time you create an invoice.
- Inventory Asset – When the primary item is made during a company file, QuickBooks creates the Inventory Asset account.
- Construction ongoing – Automatically creates this Other Current Asset account once you select the development General Contractor business type in Step 2 of the Easy Step Interview. While the account is automatically created, QuickBooks doesn’t have a built-in or automatic method of tracking Construction ongoing.
- Retainage Receivable – This account is made once you select the development General Contractor business type in Step 2 of the Easy Step Interview. While the account is automatically created, QuickBooks doesn’t have a built-in or automatic method of tracking Retainage Receivable.
- Undeposited Funds – An Other Current Asset account wont to you record a payment from an invoice or a sales receipt. QuickBooks uses this account to carry money you’ve collected until you deposit it during a checking account.
- Accumulated Depreciation – a hard and fast Asset account want to hold depreciation information that relates to furniture, fixtures, and equipment that your company owns.
- Furniture and Equipment – a hard and fast Asset want to hold information about the furniture, fixtures and equipment your company owns.
- Accounts Payable – want to hold information about what proportion money you owe your vendors and subcontractors.
- Payroll Liabilities – QuickBooks adds this account to the chart of accounts automatically once you activate the payroll feature during a company file. QuickBooks initially maps all payroll items that make liabilities to the present account.
- Sales Tax Payable – Track’s nuisance tax that you simply have charge to your customers and owe to the government; it’s created once you activate the nuisance tax feature otherwise you indicate that you charge nuisance tax in Step 10 of the Easy Step Interview.
- Capital Stock – This Equity account is automatically created supported the choices you chose within the Step 3 of Easy Step Interview.
- Opening Bal Equity – This account is made the primary time you enter the opening balance for a record account. whenever you add a replacement account with a gap balance, QuickBooks records the last half of the entry within the Opening Bal Equity account. this suggests that total equity is that the net balance of the assets minus the liabilities entered into QuickBooks. Once you’ve entered all of the accounts and balances, you’ll use a journal entry to allocate Opening Balance Equity to the right equity accounts. Consult your accountant for help with this.
- Retained Earnings – This account is exclusive because there’s no register related to it. whenever you run a record, you assign the date of the report. QuickBooks then calculates internet income from all transactions from the earliest date within the company file to the top of the financial year before the present year. QuickBooks displays the results as retained earnings. due to this feature, you do not get to make the normal closing entries at the top of the year.
- Shareholder Distributions – This Equity account is automatically created supported the choices you chose within the Step 3 of the Easy Step Interview.
- Uncategorized Income – This account is employed the primary time you enter a gap balance for a customer directly into the customer record.
- Cost of products Sold (COGS) – When the inventory feature is turned on and therefore the first item is made during a company file, the value of excellent Sold (COGS) account is made. once you choose the development General Contractor business type in Step 2 of the Easy Step Interview, several individual Cost of products Sold accounts are created – Blueprints and Reproduction, Bond Expense, Construction Materials Costs, Equipment Rental for Jobs, Other Construction Costs, Subcontractors Expense, Tools and little Equipment, and Worker’s Compensation Insurance.
- Expenses – once you choose the development General Contractor business type in Step 2 of the Easy Step Interview, several expense accounts are automatically created which may be useful in your business – Auto and Truck Expenses, Bank Service Charges, Business Licenses and Permits, Depreciation Expense, Insurance Expense, expense, Meals and Entertainment, Office Supplies, Professional Fees, Rent Expense, Repairs and Maintenance, Telephone Expense, and Utilities.
- Payroll Expenses – This account is made once you activate payroll during a company file. All payroll expense items are initially mapped to the present account.
- Uncategorized Expenses – Created the primary time you enter a gap balance for a vendor from within the particular Vendor record.
- Reconciliation Discrepancies – A travel and entertainment account used once you enter an adjustment to reconcile small accounting discrepancies, it’s wont to track all reconciliation differences.
- Ask My Accountant – QuickBooks automatically creates this other travel and entertainment account, which is employed to carry transactions that you simply aren’t quite sure the way to classify. once you use this account, confirm that you simply use the memo field of the transaction to carry details which will help your accountant correctly classify the transaction – don’t believe your memory.
- Estimates – creates this account for you to carry information about estimates or bids that you’ve got created for various customers. this is often a non-posting account that doesn’t affect your record or earnings report.
- Purchase Orders – created the primary time you issue a sale order to a vendor/subcontractor. this is often a non-posting account that doesn’t affect your record or earnings report.
- One Payroll Liabilities and Payroll Expenses account are often very limiting; subaccounts should be created for every sort of payroll liability and expense.
- instead of several individual Cost of products Sold Accounts; create a “Parent” account and make the individual accounts “subaccounts”.
The Chart of Accounts is that the most vital QuickBooks list. it’s the backbone for a corporation to trace what proportion money it’s, what proportion money it owes, what proportion money is coming in, and the way much money it’s spending.
It is not necessary to possess a chart of accounts that gives for each conceivable transaction. Instead, the chart of accounts should include the minimum number of accounts necessary to capture the acceptable financial information and be flexible enough to permit for future growth. The chart of accounts should be designed to incorporate the accounts necessary for both financial and tax reporting.
QuickBooks makes it easy for you to line up a chart of accounts.
When you create a corporation enter QuickBooks (File menu -> New Company), an Easy Step Interview is launched to guide you thru the method. Follow its “wizard” to initially fixing your company in QuickBooks, selecting the acceptable legal structure and choose a predefined chart of accounts for your industry.
If you’re unable to seek out your precise industry, you can:
- select the industry closest to yours
- copy a chart of accounts from another company in QuickBooks
- import a chart of accounts from another source
- or if you’re adventurous, start from scratch
- No got to fear: virtually everything is often undone, which is one among the explanations QuickBooks is so very popular; it’s all so forgiving.