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February 3, 2020
Question

What is a cell phone device classified as under business expense? Thanks

  • February 3, 2020
  • 1 reply
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1 reply

February 3, 2020

Hey Propmgmt,

 

It's a great habit to take the extra steps in ensuring everything is set up accurately from the ground up. Doing so helps keep things organized going forward, and set you up for some stellar categorization in your reports. When creating accounts, QuickBooks Online has several predefined account and detail types to serve as a guideline to help get you started. I'll be happy to help with this. 

 

When creating a new account, focus on the Account Type, as this tells QuickBooks how this account affect your books. Detail Type is just to further categorize your expenses, which can make your chart of accounts more manageable. Once you're sure of the account type, pick whichever detail type you find most fitting for that account. You'll be given a brief description of typical uses for the one you've selected. As an example, the Utilities detail type has the following description:

  • Use Utilities to track utility payments.

    You may want different accounts of this type to track different types of utility payments (gas and electric, telephone, water, and so on).

Just remember that these descriptions are not meant to limit you in any way, they exist solely to help you develop your organization skills. Every business is different, so try not to worry and select the most fitting option. You can always change it later if you want. Check out this awesome article if you're interested: Learn about detail types in chart of accounts

 

Let me know which type you choose! I've got your back, so don't hesitate to ask any other questions you have.