Tag Archives: Chart of Accounts

QuickBooks Chart of Accounts

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.

QuickBooks Account

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.

Expand view:

Payroll
– Basic Salary 10,000
– Bonus 5,000
– Overtime Pay 3,000
– CPF 3,600

 

Collapse view:

Payroll 21,600

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.

Sign up a free QuickBooks demo to find out more on how to use QuickBooks to manage your business finance.

Importing the Chart of Accounts into MoneyWorks

Software: MoneyWorks v7 accounting software

After verified the tax code (GST code) and tax rate (GST rate) are correct, you need to create the accounts in the Chart of Accounts list. If you have a few hundreds or thousands of accounts, the easier way is to import the account list into the MoneyWorks.

Below are a list of required fields, which will help you in preparing the import list file.

Account: Account Code (max 7 characters)
Description: Account Name (max 39 characters)
Type: Account Type*
Group: Department Group
Tax Code: GST code
Category: Account Category
P&L: Retained Earnings.

You can leave the Group and Category field blank if you are not using it. All Profit & Loss accounts are required to have a P&L account code (retained earnings account). All accounts must have a tax code, if you are not a GST register trader, you may use “*” GST code (Please refer to the Tax Code list for a list of Tax Code available in MoneyWorks).

Once the list is prepared, save it as a text file.

import file

From the “File” menu, “Import”, select  “Accounts…” to start importing the file. Unlike other list such as a name list or transaction list, it does not have a mapping window when importing the accounts list, hence you need to prepare the list in the below order.

Import accounts

The MoneyWorks import wizard will check for errors, if no error found, follow the instruction and import the accounts.

Chart of accounts list

Notes:

  • You can only import base currency account.
  • If you are using departments, the department code will be after the account code joint by a “-“. Example: Account code 7230, RENT account. If you have two departments, D01 and D02, the account code will be:
    • 7230-D01 RENT
    • 7230-D02 RENT

*Account Type available in MoneyWorks:

AR: Accounts Receivable
AP: Accounts Payable
BK: Bank
CA: Current Assets
CL: Current Liabilities
CS: Cost of Sales (Cost of Goods Sold)
EX: Expenses
FA: Fixed Assets
GR: GST Received (Special type of account)
GP: GST Paid (Special type of account)
IN: Income
PL: Profit & Loss (Special type of Account, usually use as a Retained Earnings account)
SA: Sales
SF: Shareholders Funds (Equity)
TA: Term Assets (Other Assets)
TL: Term Liabilities (Long Terms Liabilities)

Please refer to the MoneyWorks v7 user guide, page G-363, “Importing the Chart of Account” for more detail.

Import of list item into QuickBooks

I had a customer who was always very busy with meetings. She doesn’t even have times to create the name list in QuickBooks. She asked me whether QuickBooks allowed her to import those customer and supplier name list from a spreadsheet.

What are those things that can be imported into QuickBooks?

At user level, QuickBooks does allow you to import list item such as:

  • Chart of account list
  • Customer:job list
  • Supplier name list
  • Employee list
  • Item list

During the implementation stage, creating of name and item list usually takes up most of the time. By importing list item it helps to reduce the implementation time and focus on your day-to-day operational task such as invoicing and enter bills.

How to import?

Continue reading