Understanding the 12 Automatic Accounts in QuickBooks Online
Master Your Business Finances with Confidence
Simplify Bookkeeping & Build a Foundation for Success
What Are Automatic Accounts?
QuickBooks Online automatically creates essential accounts when you set up your business profile.
- Save Time: No need to manually create basic accounts
- Reduce Errors: Pre-built structure ensures nothing is missed
- Stay Compliant: Aligned with accounting standards
- Focus on Business: Less time on bookkeeping, more on growth
Why Automatic Accounts Matter
Benefits
- Structured financial framework
- Clear picture of financial health
- Better decision-making
- Easier tracking & reporting
Impact
- Improved cash flow management
- Enhanced profitability insights
- Stronger vendor relationships
- Confident financial planning
Core Tracking Accounts (1-3)
1Accounts Receivable
Track money owed by customers. Monitor invoices and follow up on overdue payments.
2Accounts Payable
Track what you owe suppliers. Manage cash flow and maintain good vendor relationships.
3Undeposited Funds
Temporary holding for payments not yet deposited. Ensures books match bank statements.
Balance & Income Accounts (4-5)
4Opening Balance Equity
Captures your starting financial position when transitioning to QuickBooks. Balances out over time.
5Sales
Records revenue from products/services. Review regularly to identify high-performing areas and growth opportunities.
Expense Tracking Accounts (6-8)
6Cost of Goods Sold (COGS)
Direct expenses of producing goods/services. Critical for maintaining profitability.
7Expenses
Operational costs like rent and utilities. Categorize accurately to identify cost-cutting opportunities.
8Other Income
Earnings outside regular business (e.g., interest). Provides clearer view of core performance.
Assets & Liabilities (9-10)
9Inventory Asset
Tracks value of goods to sell. Regular updates prevent stockouts or overstocking issues.
10Payroll Liabilities
Records amounts owed for employee deductions (taxes, benefits). Accuracy prevents legal issues.
Financial Health Accounts (11-12)
11Retained Earnings
Tracks accumulated profits not distributed. Indicator of long-term financial health and growth.
12Uncategorized Income/Expense
Temporary holding for unclassified transactions. Review regularly to maintain accurate books.
Practical Management Tips
- Reconcile Monthly: Match QuickBooks records with bank statements to catch discrepancies early
- Review Reports Regularly: Use Profit & Loss and Balance Sheet reports for informed decisions
- Customize Your Chart: Tailor accounts to fit your specific business needs
- Clean Up Uncategorized: Regularly allocate uncategorized transactions for accuracy
Key Takeaways
🎯 Foundation for Success
The 12 automatic accounts provide a complete financial framework for your business
📊 Better Decision Making
Understanding each account empowers you to make informed financial decisions
⏱️ Time & Error Savings
Automatic setup reduces manual work and minimizes bookkeeping mistakes
Your Next Steps
Take Control of Your Finances Today
- Review Your Accounts: Log into QuickBooks and familiarize yourself with each automatic account
- Set Up Monthly Reviews: Schedule time to reconcile and analyze your financial reports
- Customize as Needed: Add or modify accounts to match your business model
- Seek Expert Guidance: Partner with accounting professionals for advanced strategies
Build Your Foundation for Success
Master these 12 automatic accounts and transform your business finances
You're not just maintaining books—
you're building a foundation for growth
Happy Bookkeeping!
Presented by Lend A Hand Accounting
