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.
|Cost of Goods Sold||Cost of Goods Sold|
|Opening Bal Equity||Equity|
|Licenses & Permits||Expense|
|Payroll Processing Fees||Expense|
|Repair and Maintenance||Expense|
|Repair and Maintenance, Auto||Expense|
|Sales Tax Included in Sales||Expense|
|Subscriptions & Dues||Expense|
|Furniture, Fixtures, Equipment||Fixed Asset|
|Less - Accumulated Depreciation||Fixed Asset|
|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|
|Property Damage||Other Expense|
|Insurance Settlement||Other Income|
|Other Income||Other Income|
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