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userahmedbuhassan56
February 6, 2021
Question

Bank account name

  • February 6, 2021
  • 1 reply
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I'm a bit confused about accounts classifications. I have a one bank account to operate my business and it is my first month doing reconciliation. My question is should I add my bank name as an account and that name will appear in balance sheet. is it a correct way? Also, when entering an expense paid from that account, would I choose the account or (cash and cash  equivalents account)??

1 reply

AlcaeusF
AlcaeusF
February 6, 2021

Hi @userahmedbuhassan56,

 

Welcome to the Community. Let me provide some clarification about the financial report.

 

The Balance Sheet provides a financial snapshot of your company as of a specific date. It calculates how much your business is worth (your business's equity) by subtracting all the money your company owes (liabilities) from everything it owns (assets).

 

To answer your question, yes, you should add your bank as an account in QuickBooks. This way, it'll show on the list of bank accounts when running the report.

 

Here's how:

 

  1. Click the Gear icon in the upper-right corner.
  2. Select Chart of accounts.
  3. Press New in the upper-right corner.
  4. Choose Bank as the account type.
  5. Enter the necessary information.
  6. Hit Save and Close. 

 

For your second question, yes, select the account you used to pay for the expense. If the money came from that bank account, then choose it.

 

Also, please note that to reconcile, you'll need to enter your transactions in QuickBooks. This way, you can match them with the information from your bank statement.

 

For additional reference, you can use the following article to help you reconcile in the future, as well as learn more about the chart of accounts:

 

 

Keep us posted if you need anything else regarding the workflow in QuickBooks. Have a great day.

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