Understanding the 4 Main Account Types in QuickBooks
QuickBooks helps organize financial data through four main account types. Each type plays a unique role in tracking your business finances. Learning these categories is vital to managing and reporting finances accurately.
Assets
Your business’s assets include everything that has monetary value.
QuickBooks splits these into categories such as fixed assets (buildings, vehicles, equipment) and current assets (cash, inventory).
The system creates two subaccounts when you set up asset accounts. One tracks the original cost, while another monitors depreciation.
This setup lets you see how assets lose value over time.
You’ll need to add depreciation entries manually because QuickBooks Online doesn’t calculate this automatically.
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