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“Everyone welcome to another tutorial with ec quickbooks training in today s video. We re re going to talk about whether you should use account numbers in your chart of so let s get started to start off. We need to understand what the chart of accounts is the chart of accounts is the foundation of your accounting. So think of it as building blocks without a good foundation your whole financial block can come crumbling down.
So it s important that you have the correct chart of accounts. A clean chart of accounts now in order to access your chart of accounts. You go to accounting on the left hand side and chart of accounts. Now.
This is a sample company file. So we ll take a look at their chart of accounts. As you can see they have set up many different accounts now this company has is not using account numbers. Now many prefer to use them.
Many do not many just like to do it this way i personally like to use numbers. And i will show you why if we go back to the reporting. One of the biggest things for me as a bookkeeper is the way first of all i like to have a nice clean chart of accounts list have the foundation set. So you can record your income and expenses correctly.
Now when i when it comes to reporting. I like to see clean reports to me without these numbers i mean i can see all these. But it s kind of just a little bit all over the place for me. There is no structure.
I know that there s income there s cost of goods they re expensive. But it s just a little bit all over the place let me show you one that has account numbers. So you could see the difference this company uses account numbers now do you see how clean it looks we have the income we have the cost of goods. We have the expenses and if you go down.
I mean i can easily look at certain things i know where certain accounts are it s just so much easier to see and to analyze then not having account numbers. And that s one of the reasons. Why i like using numbers in my chart of accounts. So if you would like to use account numbers or numbers.
I m going to show you how to activate it so you go to let me let me bring this up. Here you go to the gear icon. Then you go to accountant settings. And when you go to the left hand side.
You want to go to advanced under chart of accounts. You see enable account numbers click on the pencil to the left. And then check. Enable account numbers and show account numbers and click save and once you ve done that you can click done.
And let s go to the chart of accounts. Now. There s a place to put account numbers on the left hand side and with this pencil here. If you click on it you can do batches batch numbers now i will provide you with a sample let s see it s right here a sample chart of accounts.
Because you have to remember the chart of accounts is composed of these five or it s your assets liabilities equity revenue and expenses you have to remember that so here you read it going down. So here are your assets. You use numbers that start with the 1 and i julie use for numbers. I think that s more than enough and then going down to your liabilities starts with a your equity is a three your revenues is a four and then your cost of goods are five.
And then your expenses are six and seven okay so i will link this sample chart of accounts below for you now if once you set it up. You ll be able to view reports in a nice clean. You ll be able to view reports in a nice clean way like here. And i really like this it makes it much easier on the eyes.
You may prefer to use account you may not prefer to use accounts. It s a preference. But i certainly like to use accounts because to me. It s it s nice it looks better on reports.
I hope that you like this video. If you do please give thumbs up and don t forget to subscribe to my channel for more how to tips and tricks and troubleshooting for quickbooks. I will ” ..
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