Here is the sure-fire way to set up your Chart of Accounts in Quickbooks: follow the categories on the federal tax form (Form 1040 Schedule C, Profit & Loss From Business). This will save time and headaches at year-end as your P&L totals can be quickly entered on Schedule C.
For instance, code auto expenses to “Car Expenses”, cost of business cards goes under “Advertising”, and put telephone costs (and anything else that has a large balance) under “Other Expenses” which are itemized in Part V, so the Quickbooks account is “Other Expenses: Telephone” (a subcategory)
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