Dealing with the Chart of Accounts List

After you get done setting up your Item, Customer, and Supplier lists, you still need to finalise one list: the Chart of Accounts. The Chart of Accounts just lists the accounts you and QuickBooks use to track income and expenses, assets, liabilities, and equity.

This is kind of a funny step, however, because a bunch of Chart of Accounts stuff is already set up. So what you’re really doing here is just finalising the chart of accounts (and the trial balance in the process). Typically, this consists of: adjusting bank balances, describing customer balances, describing supplier balances, describing the VAT liability (or refund), and entering the rest of the trial balance. By the way, the trial balance is prepared on an accrual basis – if you have no idea what accrual-based accounting is (and want to know), have a look at Appendix B.