Course 2: Create Your Chart of Accounts in QuickBooks Online

In this course, you’ll review your existing Chart of accounts and add the accounts your business needs. Watch the two videos below, then follow the written steps. Connecting bank feeds and categorizing transactions are covered in later courses.

Menu labels can vary by QuickBooks version. The supplied training guide is from 2023; current Intuit instructions are linked below.

Watch the videos

Video 1

Watch Video 1 on YouTube if the player is unavailable.

Video 2

Watch Video 2 on YouTube if the player is unavailable.

1. Open your Chart of accounts

  1. Sign in to the correct QuickBooks Online company.
  2. Open All apps, then Accounting, then Chart of accounts. In the supplied guide, this is under Transactions, Chart of accounts, or the Settings gear.
  3. Select See your Chart of accounts if prompted.

2. Review the accounts already listed

  1. Read the account names and types before creating anything new.
  2. Check whether an existing account already serves the purpose you need.
  3. Identify the additional accounts needed for your business. Avoid creating a second account for the same purpose.

Account type and detail type are different. The account type determines the accounting category. The detail type provides more specific organization within that category. Choose these based on what the account actually tracks, not just the name you want to give it.

3. Create an account

  1. In the Chart of accounts, select New account or New.
  2. Enter a clear Account name.
  3. Select the appropriate Account type.
  4. Select the Detail type that best describes the account.
  5. Add a Description if it will help explain the account’s purpose.
  6. If an opening balance is required, follow Step 4 before saving. Otherwise, review the details and select Save.
  7. Repeat for the other accounts your business needs.

4. Review opening balances before entering them

  1. If you selected a Bank, Asset, Credit card, Liability, or Equity account, review the Opening balance and As of date fields.
  2. Use the correct balance for the chosen starting date. For bank and credit card accounts, use the appropriate statement.
  3. Check with your bookkeeper if the account already has transactions, will be connected to a bank feed, or has an existing opening balance.
  4. Once the starting balance and date are confirmed, complete the applicable fields and save.

Do not guess an opening balance or enter it twice. Transactions from before the starting date may already be summarized in that balance. Adding them again without an adjustment can double count amounts.

5. Create a subaccount when needed

  1. Select New in the Chart of accounts.
  2. Enter the account name, account type, and detail type.
  3. Select Make this a subaccount.
  4. Choose the Parent account it belongs under.
  5. Complete any applicable opening balance fields and optional description.
  6. Review the details and select Save.

6. Turn on account numbers, if you use them

Account numbers are optional. The following workflow comes from the supplied training guide.

  1. Open Settings, Account and settings.
  2. Select Advanced.
  3. Edit the Chart of accounts section.
  4. Turn on Enable account numbers and select Show account numbers.
  5. Select Save, then Done.

7. Assign or update account numbers

  1. Return to the Chart of accounts.
  2. Open the action menu beside the account and select Edit.
  3. Enter its Number using your chosen numbering system.
  4. Select Save and close.

The guide uses 10100 for Checking as an example, not a required account number.

Update several numbers at once

  1. With account numbers enabled, open the Chart of accounts.
  2. Select the edit pencil above the list, where available.
  3. Add or edit numbers in the Number column.
  4. Review the changes and select Save.

8. Review and print your account list

  1. Review the account names, account types, and any numbers you entered.
  2. Confirm the accounts are organized as intended and that you have not created unnecessary duplicates.
  3. To print the list, select the printer icon in the Chart of accounts where available.
  4. Review print preview, choose your printer and settings, and print.

Your Chart of accounts is now ready for the next stage: Course 3, connecting your bank feeds.

References

Intuit: Add an account to your Chart of accounts
Intuit: Account types and detail types
Intuit: Create subaccounts

Additional reference: QuickBooks Online 2023 Client Training, Course 1: Get Started, published by Intuit Inc., authored by Esther Friedberg Karp. Presented independently by J.R. Harris Bookkeeping. QuickBooks is a trademark of Intuit Inc. This is not an official Intuit course and is not endorsed by Intuit.