Monday, January 24, 2022


 Get an accountant.

Got one? Great. Now ask them to help you set up your accounting software, especially your Chart of Accounts. Articles online make this sound easy, but each business has a kind of Chart of Accounts signature, a number of categories that reflect its business model that may not be present in others. My first accountant helped me set this up and over the years I've added and subtracted categories. 

My own categories are below. They don't include my own idiosyncrasies related to shareholder shenanigans, buying vehicles back and forth, and other nonsense. This is a cleaned up list, for the most part. You might look at it and notice some overlap or areas that could be combined. No doubt. I am not an accountant. 

Quickbooks is open on my laptop as long as the store is open, which means nearly every waking hour. I live in the registry. I run a couple key reports. I add deposits from five different sources daily by hand, using my online banking. I am a book keeper and I'm pretty good at it, but I don't understand 95% of what Quickbooks can do.

At tax time, I gather my documents, fill out a questionnaire for my accountant, and he and I painfully do the taxes dance. My taxes have only gotten more complicated and the rules change all the time. I am even farther away from being able to do my own taxes than when I started. I am dependent on an accountant for my taxes, and this is by design of our government. So bottom line:

Get an accountant. 

<![if supportMisalignedColumns]> <![endif]>
Account Type
Checking Bank
Inventory Bank
Savings Bank
Cost of Goods Sold Cost of Goods Sold
Investor Capital Equity
Investor2 Capital Equity
Investor3 Capital Equity
Opening Bal Equity Equity
Retained Earnings Equity
Shareholder Distributions Equity
Accounting Expense
Advertising Expense
Bank Fees Expense
Charitable Contributions Expense
Distribution Expense
Equipment Lease Expense
Events Expense
Fuel Expense
Insurance Expense
Insurance, Auto Expense
Interest Expense
Licenses & Permits Expense
Loan Fee Expense
Loan Interest Expense
Lodging Expense
Meals Expense
Merchandising Expense
Mileage Expense
Miscellaneous Expense
Office Expense Expense
Outside Services Expense
Parking Expense
Payroll Expense Expense
Payroll Processing Fees Expense
Payroll Taxes Expense
Wages Expense
Petty Cash Expense
Reconciliation Discrepancies Expense
Rent Expense
Repair and Maintenance Expense
Repair and Maintenance, Auto Expense
Sales Tax Included in Sales Expense
Software Expense
Subscriptions & Dues Expense
Taxes Expense
Travel Expense
Uncategorized Expense Expense
Utilities Expense
Furniture, Fixtures, Equipment Fixed Asset
Improvements Fixed Asset
Less - Accumulated Depreciation Fixed Asset
Vehicles Fixed Asset
Interest Income Income
Publishing Income Income
Sales Income Income
Sales Referral Income Income
Table Rental Income Income
Note Payable - Loan1 Long Term Liability
Note Payable - Loan2 Long Term Liability
Rent Deposit Other Asset
Inventory Asset Other Current Asset
Payroll Liabilities Other Current Liability
Payroll Tax Payable Other Current Liability
Sales Tax Payable Other Current Liability
Depreciation Other Expense
Property Damage Other Expense
Insurance Settlement Other Income
Other Income Other Income

No comments:

Post a Comment