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16. Making Journal Entries > Reclassifications and Corrections
As you work with your QuickBooks file, you might realize that you want to use different accounts. For example, as you expand the services you provide, you might switch from one top-level income account to several specific income accounts. Expense accounts are also prone to change—when the Home Office account splits into separate accounts for utilities, insurance, and repairs, for example. Any type of account is a candidate for restructuring, as one building grows into a stable of commercial properties, say, or you move from a single mortgage to a bevy of mortgages, notes, and loans.
Figure 16-4. Top: Before you create a general journal entry, review your Profit & Loss report to look at the accounts that you expect to change. Here, the Uncategorized Expenses account has $20,000 in it and the Employee Benefits account, which is one of the destinations for your uncategorized expenses, has $3,600. Bottom: After the general journal entry reassigns the expenses, the Uncategorized Expenses account’s balance decreases, as you’d expect, and the Employee Benefits account’s balance increases.
