Software: QuickBooks Desktop Accounting Software
The Chart of Accounts in an accounting system is a list of accounts, which categorised into Incomes, Cost of Sales, and Expenses to form the Profit and Loss statement; and Assets, Liabilities, and Equities of the Balance Sheet.
The Accountant has to create the chart according to the organisation requirement and comply with the accounting standard.
The Chart of Accounts is under the Lists menu of the QuickBooks Desktop accounting software. Click the Account button at the bottom of the list window to add, edit, or delete an account. You can also use the ‘Subaccount of’ feature to group accounts; for example, you can group Basic Salary, Bonus, Overtime Pay, and CPF to the Payroll expense account. This ‘subaccount of’ feature allows you to expand or collapse the accounts within the Profit & Loss or Balance Sheet report.
– Basic Salary 10,000
– Bonus 5,000
– Overtime Pay 3,000
– CPF 3,600
For those who prefer to work with an account number, it can be turned on from the Preferences (under the Edit menu). QuickBooks account number support up to 7 characters, which should be sufficient for most of the small businesses. However, you should not use account number feature if your computer has turned on non-English languages such as Chinese, Japanese, Thai, etc. For example, a ‘?’ will be inserted between the account number and account name, and cause an error when the Chinese language has turned on.
Consult your accountant if you have a problem in organising the Chart of Accounts.
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