When using Quickbooks to keep track of your business’s finances, you may come across “detail types.” Intuit’s popular business accounting software allows you to select from one of several account types when you create an account, some of which include expense, income and liability. Depending on the account type, it will place the account into a new subcategory so that it’s properly recorded as per the Generally Accepted Accounting Principles (GAAP). To learn more about detail types in Quickbooks and how to use them, keep reading.
Detail Types Are Chosen Automatically
As previously mentioned, Quickbooks automatically places new accounts into a specific subcategory. Cash, for example, is placed on the Balance Sheet as an asset. Payroll, on the other hand, is placed as a payroll expense. Quickbooks automatically selects the most appropriate detail type for the respective account, meaning you don’t have to worry about choosing a detail type. As long as you select the right account, Quickbooks will categorize it with the appropriate detail type.
How to View Detail Type of an Account
So, how do you view the detail type of a specific account in Quickbooks? To view the detail type of an account, log in to Quickbooks and click the gear icon at the top of the page, followed by “Chart of Accounts.” From here, you should see a list of all your accounts along with their respective detail type.
How to Change the Detail Type
While Quickbooks automatically selects detail types for new accounts, you can change it in a few easy steps. To change the detail type of an account, click the gear icon at the top of the page, followed by “Chart of Accounts.” Next, click “View Register” below the “Action” menu, followed by “Edit.” You can then select “Detail Type” in the pop-up window. After choosing your preferred detail type, click “Save and Close” to complete the process. Quickbooks will ask you to confirm the change before proceeding. It’s recommended that you double check to make sure you’ve selected the right detail type. Assuming everything looks good, choose “Yes” to confirm, at which the account will have a new detail type.
After reading this, you should have a better understanding of detail types in Quickbooks. Selecting the right detail type is essential to your business’s accounting practices because it governs the way in which transactions are recorded.
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