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.