How to use Special Account Types in QuickBooks

Written by admin on May 6, 2013

Account types in QuickBooks allow business owners to categorize accounts in a clear manner so that they can run their program more efficiently. However, these account types are not typically visible to business owners and may be difficult to find when business owners are not aware of where they should look.

One way to locate which account types in QuickBooks that a transaction is related to is to record a business transaction that should reasonably affect an account balance that is associated with a special account type. The business owner can look to see which account balance was impacted. Basically, the business owner can create a faux transaction and analyze the effects of their transactions. For example, a business owner can record a transaction for $200 during the last fiscal year. This transaction should affect the special account type Retained Earnings. Then, business owners can simply delete these faux transactions after they track the money.

Account types are not affected by the name that business owners give them. For example, simply naming an account “Accounts Receivable” will not automatically function as an Accounts Receivable transaction. This situation may arise when an account was renamed or if a business owner changed the preferences related to the account. QuickBooks automatically detects previous account types that have been established and will place an asterisk at the beginning of the name of the account. For example the program may create an account type named “*Inventory Assets.” Therefore, another way to find special account types is to spot them as accounts that begin with asterisks.

There are approximately thirteen specific account types in QuickBooks, which are assigned to individual accounts as part of the chart of accounts for a company. By establishing a special account, the account is able to do a special function. Accounts Receivable, Accounts Payable, Purchase Orders and Cost of Goods Sold help business owners track the goods or services going out and coming into the business. Payroll Liabilities and Payroll Expenses help with payroll. Undeposited Funds, Retained Earnings and Uncategorized Income help business owners track capital. Inventory Assets, Opening Balance Equity, Uncategorized Expenses and Estimates finish off the list of account types.

If you need assistance in creating account types or with using any other aspect of QuickBooks accounting software, click on the “Find a Trainer” tab above for contact information on our QuickBooks ProAdvisor in your area for additional help. Whether you need troubleshooting one one issue, help getting the software setup correctly, training, etc., our local trainer has the experience and skillset you need.