Account Numbering System

Question: Do I have to use numbers in my chart of accounts in QuickBooks?

Answer: QuickBooks permits the user to either use account numbers or not. This is a preference that can be set by going to Edit>Preferences>Accounting>Company Preferences, check mark if you want to use account numbers or do not check mark if you prefer not to use account numbers. Even though you may choose not to use account numbers, the account numbers are still there, they are just not visible. Therefore if your accountant prefers account numbers (and s/he will) s/he can set the preference to view account numbers when reviewing your file.

Even though you may not be using account numbers if you add a new account to your chart of accounts you should temporarily enable the account numbers so that the new account will have a number. Do not add this number in the "account name" field, it is not the same as adding it in the "account number" field.

When adding a new account be sure to give it the correct number...the numbers do mean something!

Here is an example of a standard numbering system.

1000 - 1999: Asset Accounts
2000 - 2999: Liability Accounts
3000 - 3999: Equity Accounts
4000 - 4999: Revenue Accounts
5000 - 5999: COGS (Cost of Goods Sold)
6000 - 6999: Expense Accounts
7000 - 7999: Other Revenue
8000 - 8999: Other Expense

Double check with your accountant for their numbering system, they may have their own system.

If you prefer not to use numbers, once you have added the new account, go back to the preferences and uncheck "Use Account Numbers" by doing it this way you and your accountant will be happy.