QuickBooks is a set of business tools intended to make your life easier. It’s an accountant solution which organizes the data for you in a presentable manner. Connect QuickBooks to the bank and you can review your transactions and import and categorize them automatically. Powerful invoicing with custom reminders, various reports, tracking, and direct deposits are some important features of this application.
Intuit has also released QuickBooks Desktop which is an accounting solution software, especially for small and medium-scale businesses. QuickBooks Desktop is, bifurcated into three versions – QuickBooks Pro, QuickBooks Premier, QuickBooks Enterprise.
A chart of accounts is the listing of all accounts for an accounting system. The chart of accounts has typically 5 categories in it- assets, liability, equity, expense accounts, and revenue. But sometimes the chart of accounts becomes so disorganized that the reports the system gives are so useless to read. These are the reasons why we need to focus a lot on optimising our chart of accounts.
Initiate, maintain and keep it consistent and ordered
Maintaining order according to what suits your business is very important for a healthy growth.
You should also use your Parent accounts and Subaccounts to see your results in the most optimised way. You can create a multilevel account having some accounts as subsidiaries under a parent account. Using a parent account allows you to run a collapsed report such that you can monitor the summary performance and get all the details of your business in the best way.
Less is the best when it comes to the chart of accounts. Review your accounts and if you find one with a small amount compared to your business and the account is not necessary for managerial reporting, try rolling it up into a larger account.
QuickBooks also provides you with the feature of deleting accounts which are no longer in use. Making such accounts inactive will help you to keep the chart of accounts at a more manageable level.
Simplicity in the chart of accounts is as important as precision. Making it complex sets you at a risk of bogging your accounting process and confusing things on the report at the time of requirement. You can add to the effectiveness by keeping it simple by adding the dimensions of Classes, Types, and Locations.
It helps you track and manage your business and produce a clean and clear summary as well as allows you to analyse additional reports on different aspects of the business. You should know the correct and maximum use of these features to get efficient reports.
If you Optimize QuickBooks Chart of Accounts, it will be very helpful in maintaining the growth of your business by producing incredibly powerful and meaningful business reports. It’s up to us how effectively we use this tool for the progress of our business.
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