Income vs Expense

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To keep your books accurately, you will want to know how to classify Income vs Expense in the chart of accounts.Remember that you can do have categories and sub-categories within income and expenses, so gather your thoughts and make sure you design your blue prints as much as you can ahead of time. Of course, you will have to and and update things as things change.


Chart of Account Income and Expense

Anything that is sales and income under an "income" account. You can separate by categories and sub-categories to be as detailed as you want.
All bills and anything that is a company expense would be in the "expense" accounts. However, some purchases are large enough that they are considered an asset versus expense, so make sure to know the difference.

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We hope that you have enjoyed and learned a bit from this video lesson in quickbooks on income vs expense.

Article Source: Quickbooks Tutorial

Resources: Quickbooks (Wikipedia) Accounting (GOV)