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Accounting codes

Discussion in 'Business Operations' started by naturescaretaker, Aug 5, 2005.

  1. naturescaretaker

    naturescaretaker LawnSite Senior Member
    Messages: 854

    Have many of you use accounting codes in Quickbooks as requested by your CPA?

    Also, do you list your fuel purchases as a "Cost of Goods Sold" or "Expense" it out? Just wondering what everyone else does.
     
  2. Branchland

    Branchland LawnSite Senior Member
    Messages: 354

    I "Expense" the fuel.
     
  3. stocksngrass

    stocksngrass LawnSite Member
    Messages: 15

    fuel should definitely be listed as an expense, you do not sell it...
     
  4. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    it is an expense.
    cost of goods sold are for materials purchased
     
  5. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Messages: 1,847

    it is a "cost of service sold". of course individuals "expense" it on their returns. for the clearest accounting picture, it has to go into line 2 of the I/S.
     
  6. stocksngrass

    stocksngrass LawnSite Member
    Messages: 15

    Mac, I have never heard "cost of service sold" used before...where did you get it?
     
  7. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Messages: 1,847

    It may have been from an accounting course, but i believe I saw it in a CLP module. Assuming we are painting a true corporate picture, It makes sense does it not? If not, where do you suggest it fits on the I/S for a service co? A variable expense such as fuel has no business in an overhead category.
     
  8. stocksngrass

    stocksngrass LawnSite Member
    Messages: 15

    I've just never seen that type of category on an income statement...definitely not saying it's wrong, just different from what i'm use to
     

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