Skip to main content
L
LCUUF
March 21, 2025
Solved

Chart of Accounts Mandatory Accounts

  • March 21, 2025
  • 2 replies
  • 0 views

Hello my friends - 

I am setting up the Chart of Accounts.

There are six Accounts that are mandatory within QBO in my initial listing (I tried deleting each to be sure).  These six cannot be deleted:

 

- Undeposited Funds

- Uncategorized Asset (sic)

- Opening Balance Equity

- Retained Earnings

- Non-Profit Revenue

- Uncategorized Expenditure

 

Here are my questions:

1) Should they be numbered?  (Does it matter?)

2) Can the ones in bold be used as "working: accounts or should they be left strictly alone? 

          a) Undeposited Earnings - I get the impression that this can be a working account....that it is where all cash donations not yet deposited go - correct?

          b) Uncategorized Expenditure - Haven't a clue.  Do I use this when the reason for the Expense is unclear?

 

Thank you as always for your expertise.

 

 

    Best answer by rvrfrf

    Thanks for getting in touch with the Community, LCUUF.

     

    As your business grows, so does the list of accounts you use to categorize finances. If you have an extensive chart of accounts, you can keep your accounts organized and easy to find by assigning numbers to them.

     

    Here's how:
     

    1. Use the Gear icon, then go to Account and settings.
    2. Access your Advanced tab.
    3. Find the Chart of accounts section and click its Pencil (Edit) icon.
    4. Turn on Enable account numbers. If you want account numbers to show in reports and transactions, hit Show account numbers.
    5. Press Save.
    6. From your Chart of accounts section in Account and settings, go to Batch edit. This can be found above the Action column.
    7. In your Number column, add account numbers.
    8. When you're finished, select Save.

     

    You can learn more about the account numbers feature by reviewing our Use account numbers article.

     

    In regard to your Undeposited Funds account, when you put money in the bank, you often deposit several payments at once. For example, let's say you deposit five checks from different customers into your real-life checking account. The financial institution records all of these as one deposit. So you'll need to combine your five separate records in QuickBooks to match what the bank shows as one deposit.

     

    To dive deeper into what your Undeposited Funds account is and how it works, I'd recommend taking a look at our What’s the Undeposited Funds account? article.

     

    As for your Uncategorized Expenditure account, this is an account created automatically to track money your business spends that still needs to be categorized.

     

    I've also included a detailed resource about working with default and special accounts which may come in handy moving forward: Manage default & special accounts in your chart of accounts

     

    If there's any additional questions, I'm just a post away. Have an awesome Friday!

    2 replies

    FishingForAnswers
    FishingForAnswers
    March 21, 2025

    @LCUUF 

     

    1) If you want or need them to be, you should be able to assign account numbers. Some governing boards can require them, depending on your business details.

     

    2a) Undeposited Funds is as you surmised; an asset account representing all of your money that is not yet in a bank.

     

    2b) I suppose I shouldn't be surprised that QBO would make something like that mandatory, but yes; it is a catch-all account for unidentified expenses. Ideally, it will never see the light of day; have mercy on your income tax preparer.

    R
    rvrfrfAnswer
    March 21, 2025

    Thanks for getting in touch with the Community, LCUUF.

     

    As your business grows, so does the list of accounts you use to categorize finances. If you have an extensive chart of accounts, you can keep your accounts organized and easy to find by assigning numbers to them.

     

    Here's how:
     

    1. Use the Gear icon, then go to Account and settings.
    2. Access your Advanced tab.
    3. Find the Chart of accounts section and click its Pencil (Edit) icon.
    4. Turn on Enable account numbers. If you want account numbers to show in reports and transactions, hit Show account numbers.
    5. Press Save.
    6. From your Chart of accounts section in Account and settings, go to Batch edit. This can be found above the Action column.
    7. In your Number column, add account numbers.
    8. When you're finished, select Save.

     

    You can learn more about the account numbers feature by reviewing our Use account numbers article.

     

    In regard to your Undeposited Funds account, when you put money in the bank, you often deposit several payments at once. For example, let's say you deposit five checks from different customers into your real-life checking account. The financial institution records all of these as one deposit. So you'll need to combine your five separate records in QuickBooks to match what the bank shows as one deposit.

     

    To dive deeper into what your Undeposited Funds account is and how it works, I'd recommend taking a look at our What’s the Undeposited Funds account? article.

     

    As for your Uncategorized Expenditure account, this is an account created automatically to track money your business spends that still needs to be categorized.

     

    I've also included a detailed resource about working with default and special accounts which may come in handy moving forward: Manage default & special accounts in your chart of accounts

     

    If there's any additional questions, I'm just a post away. Have an awesome Friday!

      Terms & ConditionsAccessibility statement