What’s in the Chart of Accounts?

What’s in the Chart of Accounts?

There are two types of accounts. One includes statistics that are used in the Balance Sheet report. These accounts may have a number of in the QuickBooks Balance column that’s primarily based totally on all transactions as much as the current date. They encompass Assets (bank accounts, accounts receivable, inventory, etc.), Liabilities (unpaid bills, credit cards, payroll, and sales taxes, loans, etc.), and Equity.  

CHART OF ACCOUNTS

The rest of the accounts are used in the Profit and Loss report, in any other case called the Income Statement. They’re divided into Income (sales, discounts given, etc.), Cost of Goods Sold (labor, shipping, materials, supplies, etc.), Expenses (advertising, insurance, payroll, etc.), Other Income, and Other Expenses. You won’t see a number in the QuickBooks Balance column for those accounts due to the fact the Profit and Loss report adjustments are primarily based totally on the date range selected.