Chart of Accounts

Every purchase, every item sold, and every dollar received must be allocated to an accounting category. These categories come from your chart of accounts. Many small business owners try to be too specific when setting up their accounts. Most businesses begin with a basic chart of accounts and add others that are specific to their type of business as they grow. Accounting software programs usually have sample charts. For example, Quickbooks utilizes a setup wizard that guides you through a series of questions about your type of business.

The following list is a good starting point but is not all inclusive.

BALANCE SHEET

Assets:

• Checking Account
• Accounts Receivable
• Inventory
• Fixed Assets

Liabilities:

• Accounts Payable

Equity:

• Equity
• Current Earnings
• Retained Earnings

INCOME STATEMENT
Revenue:

• Sales
• Cost of Goods Sold

Operating Expenses:

• Advertising
• Amortization
• Bank Fees
• Depreciation
• Insurance:
• General Liability
• Workers Compensation
• Health Insurance
• Interest Expense
• Licenses and Permits
• Office Supplies
• Payroll Wages
• Payroll Taxes
• Postage or Freight
• Professional Services:
• Accounting
• Legal Fees
• Meals and Entertainment
• Rent Expense
• Travel
• Utilities:
• Electricity, Gas and Water
• Telephone
• Trash Pickup
• Vehicle Expense:
• Fuel
• Maintenance and Registration