Chart of accounts for service business

Below is an example of a chart of accounts for a small service business. The chart contains all five account. A well-designed chart of accounts for a service business limited liability corporation, or LLC, allows for easy reporting and income tax preparation.

It’s organized to provide a centralized place to accumulate financial information. The name of the account in the general ledger.

The account names will depend on your type of business ,. Each account is given an account code or reference. In this chart of accounts for small business , the code is a. In keeping with the double-entry system of accounting , a minimum of two accounts is needed for every transaction—at least one account is debited and at least one account is credited. The standard chart of accounts is also called the uniform chart of accounts.

How to organize your chart of accounts? What is the purpose of the chart of accounts?

How do you manage the chart of accounts? Typically, a chart of accounts will have four categories. Service business is a business that provide intangible products.

Consultant, law firms, cleaning services companies fall to this category. They provide services where they need to complete at the agreed time. Although the businesses are similar, the lists of accounts for real estate development, construction, and fix and flip property have different accounting and reporting needs.

The same can be said for real estate agents and brokers, as well as REIT and BPO. Your chart of accounts is a list of all of the accounts in your system. As a limited liability corporation providing a service to customers, some of the accounts to include are asset, expense and. A chart of accounts is a list of all your company’s “accounts,” together in one place. It provides you with a birds eye view of every area of your business that spends or makes money.

The main account types include Revenue, Expenses, Assets, Liabilities, and Equity. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. The sample Chart of Accounts , shown, was developed using QuickBooks. You can see a few accounts that are unique to the business , such as Cooking Supplies, and other accounts that are common only to retail business , such as Cash Discrepancies and Merchant Fees.

The top portion of a sample Chart of Accounts.

If you are a new user, it is best to use the Express Start option and choose the predefined industry closest to what your company does. This ensures that you are set up with a default list of accounts. Customize your chart of accounts. As we said before, every business operates in its own unique way, and your chart of accounts will reflect that. QuickBooks uses this list to organize your transactions on your reports and tax forms.

Lesson 5- Chart of Accounts.