A Guide for DIY Bookkeeping: Customizing Your Chart of Accounts
Creating a customized chart of accounts (COA) is crucial for effective bookkeeping. While using the built-in COA in your accounting software is convenient, tailoring it to your business needs ensures better tracking and meaningful reports. Let's explore setting up a COA for restaurants, landscaping businesses, and art galleries.
The Chart of Accounts typically consists of several main parts:
Asset Accounts: These track what your business owns.
Liability Accounts: These track what your business owes.
Equity Accounts: These reflect the owners' investment in the business.
Revenue Accounts: These record income earned from sales or services.
Expense Accounts: These track costs incurred to operate the business.
Chart of Accounts for a Restaurant
Revenue Accounts:
Food Sales
Beverage Sales
Catering Income
Expense Accounts:
COGS - Food
COGS - Beverages
Payroll Expenses
Rent
Utilities
Marketing
Repairs and Maintenance
Chart of Accounts for a Landscaping Business
Revenue Accounts:
Service Revenue
Product Sales
Expense Accounts:
COGS - Plants and Supplies
Payroll Expenses
Vehicle Expenses
Equipment Maintenance
Advertising
Insurance
Chart of Accounts for an Art Gallery
Revenue Accounts:
Artwork Sales
Commission Income
Event Revenue
Expense Accounts:
COGS - Art Purchases
Payroll Expenses
Gallery Rent
Utilities
Marketing and Promotion
Shipping and Handling
Tailoring Your COA
Adjust your COA to fit your specific business needs, ensuring you track what’s most important to you.
Bringing in the Professionals
Setting up and maintaining a well-organized Chart of Accounts can be a bit like trying to solve a puzzle without all the pieces. That’s where hiring a bookkeeper can really save the day. A seasoned bookkeeper will set up your accounts flawlessly from the get-go, ensuring every dollar is accounted for. Plus, they’ll stick around to keep your financial records shipshape. Trust us, it’s a game-changer!
Click here to fill out our Bookkeeping Services Inquiry Form
