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Comprehensive Overview for Small and Medium-Sized Businesses

Contact Information:

• Phone: 1-855-550-0701 

• Email: https://www.bookkippo.com/quickbooks-support/

• Website: https://www.bookkippo.com/quickbooks-support/

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  Understanding the 4 Main Account Types in QuickBooks

  QuickBooks helps organize financial data through four main account types. Each type plays a unique role in tracking your business finances. Learning these categories is vital to managing and reporting finances accurately.

  Assets

• Your business’s assets include everything that has monetary value.

• QuickBooks splits these into categories such as fixed assets (buildings, vehicles, equipment) and current assets (cash, inventory).

• The system creates two subaccounts when you set up asset accounts. One tracks the original cost, while another monitors depreciation.

• This setup lets you see how assets lose value over time.

• You’ll need to add depreciation entries manually because QuickBooks Online doesn’t calculate this automatically.