Craig's Bookkeeping can help you set up your chart of accounts specifically for the needs of your business. This is an important time saving process for all businesses. Many businesses neglect setting up their chart of accounts correctly. This can end up causing numerous problems and invites extra work when it comes to data entry and the preparation of your financials to your CPA.
10 Points to Remember in Setting up Your Chart of Accounts
1. Setting up income types, locations, departments, properties and/or jobs.
2. Use accounts and subaccounts for revenues & expenses that you want summarized.
3. Use draw accounts to separate personal and business transactions.
4. Keep business credit cards separate from personal credit cards.
5. Setup depreciation accounts from tax portfolio records for tracking purposes.
6. Consult with CPA on accounts to be used for efficient tax preparation.
7. Try to avoid using vendor names in your chart of accounts.
8. Distinguish short term from long term liabilities for prospective loans.
9. Setup your pensions, IRAs, 401Ks, or other plans, and track them.
10. Be sure to enter beginning balances for existing assets and liabilities.
Chart of accounts can be setup to accommodate the needs of you CPA as it is important as an employer to minimize the time that your CPA has to spend on ANY bookkeeping activities that can be eliminated through effective planning. Craig's Bookkeeping keeps this in mind at all times as it is important to ensure that you don’t have to pay an arm and a leg to make sure that your bookkeeping service and CPA are on the same page.
Craig's Bookkeeping offers one-hour consultation with your CPA, free of charge. We do not believe that you should have to pay the CPA rate and bookkeeping rate simultaneously to ensure that both halves of the financial brain are connected.