Learning to read those financial statements? Here’s a quick foundational lesson on interpreting those numbers in front of each account.
Account numbers are numbers that correspond with each account to help you recognize the category of the account. Although the use of account numbers is unnecessary in QuickBooks, it is still considered a good accounting practice, and
the general rule of thumb is to assign the following numbers to account names within these categories:
• 1000‐1999 Assets
• 2000‐2999 Liabilities
• 3000‐3999 Equity
• 4000‐4999 Income
• 5000‐5999 Cost of Goods Sold
• 6000‐6999 Expenses
• 7000‐7999 Other Income
• 8000‐8999 Other Expenses
When setting up your company file, add the account numbers given by your accountant or bookkeeper.
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