Quickbooks Training
QuickBooks for Start Ups
QuickBooks for startups is really getting a great foundation to build on.
Okay, lets imagine buckets of apples and buckets of oranges.
What do you want to separate?
CHART OF ACCOUNTS
Do you like your chart of accounts?
QuickBooks gives you a chart of accounts, yes.
It is editable, to your needs.
The beginning is valuable to the ending, the financial statements.
You can make your financials make sense to you.
The chart of accounts are the words down the left of your financial statements.
Clients repeatedly say they do not understand their financials.
Income and a number. Okay that is simple.
Let’s keep it that simple.
Say you have more than one kind of income and you would like to distinguish one from another.
Example of subaccounts for Income:
Income
| Sales in store: $100 |
| Sales online: $100 |
| Sales at Trade shows:$100 |
| TOTAL INCOME: $300 |
Total income is what shows up on what you give to the banks and CPA/IRS.
The details are just for you.
Go crazy, name it what makes sense to you!
QuickBooks for startups is really getting a great foundation to build on.
Automobile Expense is a common chart of account to subaccount. Automobile Expense and Auto Loan are treated differently in accounting. The loan is a liability.
Example of subaccounts for Auto:
Automobile Expense
| Gas: $100 |
| Parking: $100 |
| Insurance: $100 |
| Repairs and Maintenance: $100 |
| Tolls: $100 |
| TOTAL AUTOMOBILE EXPENSE: $500 |
Total Auto Expense is what shows up on what you give to the banks and CPA/IRS.
The details are just for you.
Go crazy, name it what makes sense to you!
The IRS states business expenses need to be necessary and ordinary.
Miscellaneous is an account to be avoid at all costs.
QuickBooks gives you a recommended chart of accounts.
The 3 main categories:
| Income |
| Cost of Goods Sold |
| Expenses |
Income is the money you receive (from customers, clients, patients, students) whatever it is you offer that Uncle Sam will want his taxes paid on.
Cost of Goods Sold, think of it as the money you pay to sell whatever it is you sell. Like a home office therapist wouldn’t have a cost of goods sold because they don’t have a good to sell, they have a service. But if you sell toys, you have to buy the toys. The cost of the toy is the cost of goods sold.
Expenses, the warehouse or office would be a “Rent Expense”. Rent expense is a chart of account that comes in your QuickBooks.
All of the chart of accounts can have subaccounts, even the subaccounts can have subaccounts.
Get specific if your needs are specific.
If you need a report that can spit out that specific information at the touch of a button, then get specific.
This is where the beginning is valuable to the ending, the reporting.
What do you want to know in the click of a QuickBooks button?
QuickBooks for Start Ups is building a solid foundation to grow on.