In Chart of Accounts I do not see any that’s fit for R&D. Which account detail type do I enter our R&D expenses in new QuickBooks Online?

Post author By admin
Post date April 2, 2014

It requires that R&D generally be expensed as incurred now.
So, in QBO, it should be considered an Overhead Expense, not Direct Cost or COGS.
How to set up R&D as Overhead (O/H) in new QuickBooks Online?
Figure out the main primary operating costs for R&D and categorize expense type.
In QBO chart of accounts detail type are already defined. I would select “Other miscellaneous service cost” as detail type to track costs related to R&D.

For example your Chart of Accounts should like this:

Research and Development (R&D) Chart of Accounts

R&D Expense:

Salary and Benefits
Purchased Materials
Independent Contractors
Equipment Expense
Travel Expense
Other R&D Expense

This is just an example. Only your CPA can give you better guidance for your business.

Tags all expense accounts, asset accounts, chart of accounts, coa, equity accounts, expense accounts, income accounts, liability accounts, net income, retained earning account

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