Where to Enable Account Numbers in Your Chart of Accounts

A Chart of Accounts (COA) is an organized listing of all financial accounts a business uses. It categorizes financial data, showing where money comes from and goes. Account numbers are unique identifiers for each account, enhancing organization, quick navigation, and report clarity.

Understanding Account Numbers in Your Chart of Accounts

Businesses use account numbers to streamline financial reporting, improve data entry accuracy, and facilitate communication with accountants. They help categorize and locate specific accounts efficiently; for instance, finding account “1200” instead of “Accounts Receivable.” Account numbers help maintain a structured and logical financial system, which is particularly beneficial for larger charts of accounts or businesses with numerous transactions. A well-designed numbering system reduces the risk of misclassifying transactions and ensures consistency across financial records.

Enabling Account Numbers in Popular Accounting Software

QuickBooks Online

To enable account numbers in QuickBooks Online, click the “Settings” gear icon. Select “Account and settings,” then navigate to the “Advanced” tab. In the “Chart of accounts” section, click the “Edit” pencil icon. Turn on the “Enable account numbers” toggle, and check “Show account numbers” to display them in reports and transactions. Click “Save” and then “Done.”

QuickBooks Desktop

For QuickBooks Desktop, open the application. Select “Edit” from the top menu bar, then “Preferences.” In the Preferences window, choose “Accounting” from the left list, then select the “Company Preferences” tab. Check the “Use account numbers” checkbox. Click “OK” to save changes.

Managing Account Numbers After Activation

Once account numbers are enabled, you can assign them to existing and new accounts. In QuickBooks Online, navigate to the “Chart of accounts” from the “Settings” gear icon. Click the “Batch edit” pencil icon above the Action column. A “Number” column will appear, allowing you to enter a unique number for each account (typically up to seven digits). Click “Save.”

When assigning account numbers, follow a logical numbering scheme. A common practice is to allocate specific ranges for different account types; for example, assets often begin with 10000s, liabilities with 20000s, equity with 30000s, income with 40000s, and expenses with 50000s or 60000s. Leaving gaps (e.g., 10000, 10100, 11000) provides flexibility to add new accounts without disrupting the sequence. To modify an account number, edit the individual account within the Chart of Accounts list or use the batch edit option.