Time for action - fine tuning business accounts
We will now go through the specific steps needed to create a new account, make changes to an existing account, and delete unwanted accounts.
- Creating a new account: For example, you find that you are spending a lot on auto insurance. However, currently there is no separate account for that. So, we are going to go ahead and create a new account for auto insurance. Select File | New | New Account. The New Account dialog will open. Make sure Expense is selected as the Account Type and Auto is selected as the Parent Account. Enter Auto Insurance in the Account name as well as Description, as shown in the next screenshot, and click OK.
- Renaming an account: You don't care much for the name Petty Cash