Home > QuickBooks Tutorials, Setting up Your Company > How to set up your QuickBooks company file and start entering transactions

How to set up your QuickBooks company file and start entering transactions

Below is a link to a video tutorial going over all of this in some detail just to get you started:

http://www.nerdenterprises.com/Web_Casts/FTS/Food_Truck_Sample.htm

When you first decide to start a business there are two people you should always consult to be sure you know how to cover the important bases in two critical areas. These two people are an attorney and a CPA. We’re here to talk about the second one. Your CPA will guide you as to what you need to know in terms of making sure you have the right accounting setup. One of the first things he or she is likely to tell you is to go out and buy QuickBooks and start using it. They may also then refer you to someone like me to help with the setup. If you have no previous experience with business or accounting, then you are likely going to find yourself wondering where to begin. Luckily there are many resources out there where you can get QuickBooks help. This is one of them.

  • The first thing you will need to do is set up your company file. In order to understand what is involved here you will want to begin understanding the chart of accounts. This is your “list” of the accounts that make up your accounting and they are broken down into five general categories:
    • Assets
    • Liabilities
    • Equity
    • Revenues
    • Expenses
  • You will want to begin to understand the difference between these account types so that you have a better understanding of what is involved in your accounting. Here are some very simple definitions that will help you get started:
    • Assets = things you own or have rights to
    • Liabilities = obligations, things you owe, debts
    • Equity = Assets – Liabilities (the net book value of the company)
    • Revenue = Gross sales
    • Expenses = Cost of doing business

Once you have your accounts and overall company file set up you will want to begin entering transactions. Assuming you have been in business for a few months, then the best place to start is getting the expenses on the books. In all accounting software packages this is going to involve writing checks to start with.

Below is a link to a video tutorial going over all of this in some detail just to get you started:

http://www.nerdenterprises.com/Web_Casts/FTS/Food_Truck_Sample.htm

Please feel free to post any comments or replies here with feedback, questions or suggestions.

Thanks!

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