The information technology field is a booming industry that sells both products and services, so the QuickBooks chart of accounts must be customized to the specific needs of each company. IT companies offer many different services such as software design, network engineering, desktop support, and structured cabling. Other companies do not provide services at all and sell products such as computer software or hardware.
The first step to setting up your QuickBooks file the right way is to decide on income accounts. To do this, focus on what it is that your company is selling. If your company sells a piece of software like Adobe or Microsoft or computer hardware like Dell or Gateway, then set up a sales income account for your products. If you sell services or are an IT consultant, then set up an income account for services rendered or for consulting income.
Since IT companies tend to make large electronics purchases for things such as computers, workstations, tablets, cell phones, servers, monitors, and peripherals, it is important to have an expense account dedicated to these electronics purchases. It is also a good idea to have a depreciation expense account to write off the value that is lost over time on these large and expensive purchases.
Where Can I Find More QuickBooks Help?
To learn about a chart of accounts for another industry, try our post on industry specific charts of accounts.
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