QuickBooks Online Setup Guide for New Businesses
Most QuickBooks cleanup projects start with a file that was set up wrong at the beginning. Here's how to do it right the first time.
Pick the right subscription tier
Simple Start ($35/mo): sole prop, no A/R, no inventory. Too limited for most.
Essentials ($65/mo): A/R, A/P, multi-currency, three users. Fits most solo service businesses.
Plus ($99/mo): class/location tracking, inventory, five users, project profitability. Fits contractors and small teams.
Advanced ($235/mo): custom roles, workflows, batch invoicing, 25 users. Overkill for most under 20 employees.
Enter company info and tax settings
Legal business name matching your tax filings.
Federal EIN.
Business address matching your tax filings.
Fiscal year start (usually January).
Tax form (Schedule C, 1120-S, 1065) — this drives account structure.
Accounting method: cash or accrual (matches how you file taxes).
Build a chart of accounts that matches your tax return
Delete or hide default accounts you won't use.
Add accounts matching Schedule C or 1120-S expense categories.
Number accounts (5-digit numbering is standard): 1000s assets, 2000s liabilities, 3000s equity, 4000s revenue, 5000s COGS, 6000s expenses.
Never delete an account you've posted transactions to — hide it instead.
Connect bank feeds
Connect every business bank account, credit card, and loan.
Set up bank rules for recurring transactions (rent, subscriptions, payroll).
DO NOT connect personal accounts — keep business and personal separate.
Set the opening balance date
Ideally, start QuickBooks on January 1 of a new year with zero opening balances.
Mid-year start: enter accurate opening balance sheet from a professional trial balance. Don't guess.
Set up recurring templates
Recurring invoices for subscription customers.
Recurring bills for rent, utilities, subscriptions.
Recurring journal entries for monthly depreciation.
A quick disclaimer
This article is general information for Montana small business owners, not tax, legal, or accounting advice for your specific situation. Rules change, and how they apply depends on facts we don't know about you. Before acting on anything you read here, talk to a qualified professional. If you're a Montana business owner and want a real conversation about your books, payroll, or tax, that's what Marlow Accounting is here for — call 406-290-1214 or schedule a discovery call.