QuickBooks Chart of Accounts

Discussion in 'Business Operations' started by CleanCuts12, Apr 10, 2013.

  1. CleanCuts12

    CleanCuts12 LawnSite Member
    Posts: 37

    Hello,

    I have decided to start tracking my finances with QuickBooks online. I am familiar with QuickBooks and know how to work it, but I would like to hear some input with the chart of accounts. I know how to perform the account, but I have never set up the accounts myself before. I don't need it to be extremely detailed. I decided to start this thread to see what others have used for their char of accounts? Suggestions? Comments? Upload your chart to the forum?

    Anything will help,
    Thanks!
     
  2. dllawson

    dllawson LawnSite Member
    Posts: 172

    Your chart of accounts will evolve as your business becomes more mature, but you can start by tracking a few key areas.

    Income

    Direct expenses – These are items you only pay for if you do a job. The most important are time (labor) and materials (anything you leave or use on a customer’s property: plants, fuel, blades, etc.) If you do not work tomorrow, you will not have any bills in this section. These items subtracted from your income will calculate your gross profit.

    Indirect expenses – These are items you must have to be in business, but may be hard to tie directly to a job. These are also things you have to pay for each month even if you did not do any work. Cell phones, insurance and hopefully your salary are great examples. If you do not work tomorrow you will still have to pay bills in this section. These items subtracted from your gross profit will calculate your net profit.

    If you start by measuring these three areas, you will get a good idea of how your business is performing. Gross profit will tell you if your jobs are profitable, and net profit will tell you if your business is profitable. Add new accounts as you become more curious about different areas of your business.
     
  3. CleanCuts12

    CleanCuts12 LawnSite Member
    Posts: 37

    This is what I have so far -- any suggestions for improvement?

    Asset Accounts
    No. Account Title
    110 Cash
    120 Accounts Receivable
    130 Supplies
    140 Prepaid Insurance
    150 Equipment
    160 Accumulated Depreciation

    Liability Accounts
    No. Account Title
    210 Notes Payable
    220 Accounts Payable
    230 Wages Payable
    240 Interest Payable
    250 Unearned Revenues

    Owner's Equity Accounts
    No. Account Title
    260 Capital
    261 - Capital - owner
    270 Drawing
    271 - Drawing - owner

    Operating Revenue Accounts
    No. Account Title
    310 Service Revenues
    311 - Service Revenues - Mowing Package
    312 - Service Revenues - Spring Clean Up
    313 - Service Revenues - Fall Clean Up
    314 - Service Revenues - Mulch
    315 - Service Revenues - Trimming
    316 - Service Revenues - Edging
    317 - Service Revenues - One-time Mowing
    318 - Service Revenues - Other

    Operating Expense Accounts
    No. Account Title
    510 Gas Expense
    511 - Gas Expense - Equipment
    512 - Gas Expense - Truck
    520 Supplies Expense
    521 - Supplies Expense - Administrative
    522 - Supplies Expense - General
    530 Repairs and Maintance Expense
    531 - Repairs and Maintance Expense - Equipment
    532 - Repairs and Maintance Expense - Truck
    540 Wages Expense
    550 Insurance Expense
    560 Interest Expense
    570 Rent Expense
    610 Advertising Expense
    710 Depreciation Expense

    Non-Operating Revenues and Expenses, Gains, and Losses
    No. Account Title
    910 Gain on Sales of Assets
    920 Loss on Sales of Assets
     
  4. rbljack

    rbljack LawnSite Senior Member
    from Texas
    Posts: 711

    I started using quickbooks online myself last month, and discovered it wasn't like the contractors edition that you can purchase. I thought it would allow me to select lawn care or landscaping and set up a basic chart of accounts for our business model...but nope.

    So I too am looking for help in this area. Can we get some additional info on this topic please.

    I used the search function to find this post, and am looking through others, but would like to hear what yall have for info...thanks.
     
  5. hllc

    hllc LawnSite Member
    Posts: 137

    Real old thread, but working through quickbooks and wondering if any has help on this exact question.

    Thanks
     
  6. GaryBK

    GaryBK LawnSite Senior Member
    from Canada
    Posts: 271

    Watching
     
  7. sjessen

    sjessen LawnSite Gold Member
    Male, from Knoxville, Tn
    Posts: 3,496

    How about setting the expense portion to mirror the information needed for IRS form Schedule C?
     
  8. DuallyVette

    DuallyVette LawnSite Gold Member
    Posts: 3,297

    I've used QuickBooks Pro since 1996. All I did was 1) pick up a receipt from my desk from a business transaction. 2) I start entering it. lets say that it was a credit card charge for truck fuel. I open the "enter credit card charges" I enter CITI VISA 1234. It asks to set up account. I click OK and answer any other questions it asks. Then I enter SHELL for the name of the place that I bought the fuel. Now...I over do this...I put the fuel into an account for Black 2004 truck, or 2002 white truck. On the form, where it has a invoice number. I enter the mileage of the truck. On another line I enter "67553 mi 32.087 gal @$ 2.25". I like to keep the fuel for each separate. So, Under FUEL I has GAS EQUIPMENT, DIESEL EQ, CHIPPER, 2002 K3500, 2004 K3500 etc.
    If I pick up a receipt from my desk for a Chipper repair. IT can ALL go under EQ REPAIR as far as the IRS cares. BUT I like to keep each large piece of equipment separate. So in a "folder" under EQUIPMENT REPAIRS, I would enter MORBARK 2090. QB will help you set it up and then you enter the repair bill. The bill came from MACK'S CHIPPER REPAIR. you enter that, and QB gives you the option of filling out their address, phone number etc.
    I probably set up my Checking account first and picked a START DATE.

    Anyhow. mine came with a tutorial. just pick up a reciept and get started.
     
  9. DuallyVette

    DuallyVette LawnSite Gold Member
    Posts: 3,297

    When you set up a account for MULCH that you purchased. SO you type in MULCH and QB asks you to classify it EXPENSE: MATERIALS and then it asks you to connect it to a line on IRS tax line. It gives you a pull down list to select from. Now it is attached to the correct line so QB can help you with your tax information.
     
    sjessen likes this.

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