What to do w/receipts

Discussion in 'Business Operations' started by tomoaktree, Oct 27, 2001.

  1. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    Tom-
    Yes, set up all the categories you think you may need. Even go to excess, with too many categories; if you find later that you do not need so much detail, you can rename categories to combine them. But it is much more difficult to break one category into several other categories in the future. And plan your useage of the "memo" field also, so you can do detail reports and searches in the future.

    Ric-
    You have to expand your thinking about computer data. Use the memo field to record details, so future searches can be done quickly. I would record the above purchase as a split transaction:

    memo - - - - - - Category - - - - - - - Amount
    #43: drive belt - Repairs:mowers - - - - 25.00
    4 23-5-18 @12.50 -Chem:lawn fert - - - - 50.00
    qt Weedicide - - -Chem:lawn herb - - - - 25.00

    Using this type of detail, I can track unit #43 to see if it is experiencing unusual extra maintenance (a lemon, or operator abuse?, etc.), and what parts it is using. I can also track the cost of this particular fert formulation over several years, without rummaging through any paper documents.

    It does take some extra time to input this detail data, but reports and searches are much faster in the future. No paper filing system can match a computer database for ease of use int his manner.
     
  2. tomoaktree

    tomoaktree LawnSite Member
    from WNY
    Posts: 114

    Jim,
    How long have you been using this system ? It sounds like you have it down good. It must feel good to be that organized .
    Would it be possible for you to post a copy of your chart of accounts ?
     
  3. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,712

    Receipts are put in a montly folder after being enterd into the acctg software.

    Each piece of equipment or small tool (not hand tools) has it's own folder. Miantenace records and repairs along with reciepts are placed there after logging into acctg.

    I thought I was anal but not enough to track fuel, parts and some other things for each piece of equipment. We go by division or revenue source such as lawn care, irrigation etc. Then we have categories and subs under them to get a true profit picture.

    Payroll is tracked by division and working hours payed for. Holiday, personal, shop (rainy or repair days) hours, are not mixed with production hours.

    This makes it real easy to total production hours and see sales per hour, equipment costs per hour, overhead per hour etc.

    Total payroll and related costs such as SS, WC, liability, uniforms, health ins, help wanted advertising etc can be divided by the production hours paid for to get you real labor costs per hour.

    It's not the hourly wage you think it is.

    Good payroll records are probably more important than general acctg because we are so labor intensive and not being right can really screw you up. You gota do it all.

    Another benefit is that by doing all acctg an payroll in house I take a neat pkg to the accountant once and year and get my taxes done for a few hundred bucks, business & personal.
     
  4. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    My accounts were created to make tax reports easy, and to give me the information I wish to have access to for my business. The need for various details has changed over the years, and some categories got combined and some new ones created. I even see some weaknesses in my system that I am just too lazy to fix. I would not recommend anyone use my exact system, because it is configured just for myself.

    It would be best for you to go with a standard format, and any accountant could help you set up this structure. That way you would have a format that any accountant could work with, when you need outside help with the numbers.
     
  5. Ric

    Ric LawnSite Fanatic
    Posts: 11,946

    Jim

    You right I am an old dog but still can learn new tricks. Thanks

    Ric
     
  6. eslawns

    eslawns LawnSite Senior Member
    Posts: 712

    I use an accordian file and Peachtree. The information is recored in the computer and the paper receipt filed by what categoty it falls into. Fuel, equipment repairs (labor), equipment repairs (parts), Utilities (Phone), that kind of thing.

    At the end of each year when I go through and verify everything, I put the contents of each file in a paper clip with a piece of paper around it indicating the contents. All these go into a large manila envelope with the year, etc. on the outside. When that isn't big enough I'll use a box for from Office Max.
     
  7. Dochere

    Dochere LawnSite Member
    Posts: 137



    Same here. All receipts are attached and filed with each job and the expenses are logged into QuickBooks. Gas is done on bus card as well as all bus card purchases and logged into QuickBooks. At the end of the year we get a year to date statement and use that in replace of receipts for the business cards.
     

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