 Up top in the cog we have some of our setup process. So if I wanted to go into the account and settings then this would Go into basically our overall settings that we can review those items If I wanted to add users and so on it would be in here And then if I wanted to go into my lists, these are my underlying kind of lists the main two lists we think of our products and services and The chart of accounts although you can get into those by going to other locations than in here So just be aware of that you're probably not going to go into the cog and lists all the time to find the chart of accounts Or the products and services, but classically they've been called lists as kind of a legacy from The desktop view where they were located under a drop-down under lists Now if you were in the in the business view then you're gonna have The get paid and paid area has kind of like the customer cycle and the vendor cycle kind of grouped together And then when you want to get into the chart of accounts It's gonna be under the bookkeeping and then the chart of accounts. So this is where we're gonna work on here There's your chart of accounts. That's what we're gonna go now. So I'm gonna go to the left-hand side and go down to Accounting and so now we're under the accounting. Here's the chart of accounts now We just set up this customer this account and we tried to have it so they didn't give us a chart of account But we don't really have the option when we set it up to not give us the chart of account because I'd like to practice Creating the chart of account with the bank feeds because that'll help us to fully understand how the bank feeds work How we enter transactions with the bank feeds But when we set up any time you set up a QuickBooks file, they basically Mandatorily give you this massive chart of accounts now the general rule I would have with this chart of accounts is that I would use it. I would say here's the chart of accounts I'm gonna start to do my data input if you're setting up a company file from scratch and you're starting up a new business Then this could be a good template to start off with with your chart of accounts Notice that most of the flexibility with a chart of accounts is often down here in the expenses area because that's where you have the most Differences in the largest list of account types down here that oftentimes are created as we do Transactions such as the bank feed data input as we make payments So as a general rule you might say, okay I'm gonna start doing my transactions and if there's a chart of accounts down here that fits what I'm doing Then I'm gonna use whatever chart of accounts that they set up and with the assumption that that's gonna be somewhat standard account Categorization if there's not an account that I think is exactly the way I like it But they have a similar type of account or they have an account that is a Subsidiary account and I don't want it to be a subsidiary account or something like that Then I'll use that account and I'll go ahead and edit the account that I want to change So I'll go in here and I'll change it So it's not a subsidiary account and I'll change the name to what I want as opposed to Making another account that is similar in name Because if I do that, it's likely that I start to post to multiple different accounts For the same thing it'll kind of mess thing and that'll mess things up And then if there's no account at all for what I want to set up Then I will create a new account and then after two months or so of data input You might want to then go into this chart of accounts and start to make the accounts that you're not using Inactive otherwise you've got all these accounts that could make it a little bit difficult to do certain things like budgeting Or when I select the drop-down for example for a form for like an invoice if I was to enter like an invoice and I'm and I'm trying to Hit or not. Let's let's do a bill if I was gonna enter like a bill or an expense type of form Enter an expense form and I select the drop-down For the category, which is the chart of accounts. I've got this massive, you know list of accounts in here I'd like to limit that to accounts that I'm actually using and that will make it a little bit easier for those First for those kind of things so but in our practice problem What I'd like to do is basically Remove as many of the accounts as possible so we can see how we can construct the chart of accounts and After constructing the chart of accounts see how those are used to construct the financial statements balance sheet an income statement as we actually Do the data input directly from the bank feeds So what I'm gonna do is I'm gonna go through all of these and I'm gonna delete all the accounts that they basically will let me Delete now I can't actually delete them which is kind of annoying even though there's no activity in it But I can make them inactive