I just visited a new client with a new QuickBooks Online Simple Start subscription. His chart of accounts was a disaster. Way too many accounts for starters, and the software to modify or delete them was not what it "should" be.
Using my accountant's access to his QuickBooks, with my higher level version of QB Online, I at least had good software to DELETE OVER 100 ACCOUNTS! Thanks a lot Intuit.
On top of that one can't just go "delete" because QB Online never deletes an account. I have to rename the account so that the client won't be tempted to use it. I'm showing you here that I renamed over 100 accounts.
All the accounts included were so ridiculous I could not believe it. Even Intuit Corporate does not want a chart of accounts anywhere near the length of one they gave this unsuspecting customer. What is the problem with the QB Online team that they would release this nonsense? It's as if you buy your first house, without being warned that it will be full of garbage for you to dispose of before you can move any of your stuff into there. Surprise!
Your Chart of accounts should be small and tight. If I end the year with only $10 posted to one account, I don't need that account any longer. I'll move the $10 to another account because with fewer accounts the financial report is easier to understand and analyze. It's art as well as science.
For everything you want to know about creating an awesome chart of accounts, please read or listen to my book, "Radically Simple Accounting".
If DIY is not your style, or you want more help, I'll be happy to work with you to fix the chart of accounts you have now, or create a new one for your business.
