Setting up a Chart of Accounts in QuickBooks is crucial for organizing your financial records. Start by categorizing accounts into five main types: Assets, Liabilities, Equity, Income, and Expenses. Each account can be customized to fit your business needs, such as adding sub-accounts for detailed tracking. Navigate to the "Lists" menu in QuickBooks and select "Chart of Accounts." From there, click "New" to create accounts, choosing the appropriate type and assigning numbers for easy reference. Regularly review and update your Chart of Accounts to ensure it accurately reflects your business's financial activities. This structure aids in efficient financial management and reporting.