Question: Why did QB set up Merchant Account Fees as a COGS (cost of goods sold) account? Before starting to use Quickbooks, I always had the Merchant Account Fees account set up as Expense Type. QB interview set it up as COGS. (I am an artist and do keep track of inventory). Should I change it back to Expense?

Answer:The chart of accounts & the COGS account were created based on your selections during the QB setup interview. From what you’ve said so far, it sounds like you have made some incorrect selections or need some adjustments made to your Chart of Accounts.

If you are comfortable with the day to day data entry, you may want to have someone review the chart of account and other selections you’ve made to make certain that they correspond to your business appropriately. I would do this as soon as possible, you don’t want to get too far into the process or all your hard work will be for nothing.

 

About The Author

Joyce M. Washington is a Certified Public Accountant & Business Strategy Coach who teaches consultants, coaches and creatives how to go beyond the numbers and grow their businesses.

Visit her at: TheCommonCents.com to grab 7 Steps To Better Books or come chat with her at The Cents Community on Facebook.

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