So, you just realized that you’re using the wrong account type when recording transactions in Quickbooks. Now what should you do? The good news is that Quickbooks makes it easy to switch out different account types. And even if you initially used the wrong one, you can go back and correct the mistake in just a few simple steps. Taking the time to fix these errors now will ensure your accounting goes smoothly and without any discrepancies.
Note: there are certainly restrictions placed on changing account types. These restrictions are in place to maintain the integrity of Quickbooks. See the list below for a brief outline of account-changing restrictions.
- Accounts receivable and accounts payable are not changeable.
- If the account type was automatically created by Quickbooks, you cannot change it.
- Subaccounts can’t be changed; however, a simple fix to this problem is to drag them to a new location.
- Accounts can only be changed one at a time.
Another Note: always back up your Quickbooks data before changing account types. While this typically won’t cause any issues with your Quickbooks data, it’s always a good idea to have a full backup in the event of data corruption. Some users may not want to spend the additional time and energy to create a full backup before changing their account types, but doing so will give you the peace of mind knowing that your data is 100% secure and protected from failure.
Changing Account Types
To change account types, fire up your Quickbooks and visit the “Chart of Accounts” section and select the account you wish to change. If you look down at the bottom of this screen, you’ll see a list of available options for changing your account types. The first option available is “Options.” Click this button and choose “Edit Account” from the drop-down menu. After doing this, proceed to the next step listed below.
After selecting the “Edit Account” option, you’ll be able to specify the type of account used in your Quickbooks. Click “Account,” followed by the appropriate ‘type’ of account you wish to use. Double check this option to ensure it’s the desired account type and select “Next.” Quickbooks will now associate the Chart of Accounts with this new account type. Even if you previously entered an item under a different account type, you can easily go back and adjust it using this method.