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  • Lela Countryman

Setup Your Chart of Accounts in QuickBooks Online


The next step in setting up your business in QuickBooks Online is to setup your chart of accounts. Your chart of accounts is a list of categories to organize your transactions in your business. You will set up your bank and credit card accounts and set up your bank feeds if they are available in QBO. After the bank set up, you will enter your account balances to ensure your balances match your statements.

The first step is to adjust the current chart of accounts to only the accounts you will be using and add any accounts that you may need. You will start from the Dashboard and go to gear in the upper right-hand corner and select Chart of Accounts.

When creating the account numbers, I suggest using a four-digit code to allow for more accounts.

The next step is to add your bank account(s) and you will need your bank statement balance for the day before you plan to begin tracking in QBO. From the tabs on the left-hand side of your screen, select Banking.

Follow the prompts to set up the bank feeds within QBO.

The account balance should already be accounted for however, you may need to adjust your opening balance. You will do this by going to your Chart of Accounts and select View Register on the bank account line. The opening entry will be there and verify that it matches your bank statement.

Once you have set up your chart of accounts and your bank accounts, you are ready to start classifying and reconciling your transactions.


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