Building a Practical Chart of Accounts: Two Sample Documents
No matter what product is to be sold or what service is to be offered, starting and operating a small business takes courage, fortitude and lots of planning.
One of the first, and also one of the most serious, accounting mistakes small businesses to make is not creating a cogent, coherent and practical chart of accounts. In fact, some people start a business without even knowing what a chart of accounts is.
The chart of accounts is a numbered list of assets, liabilities, equity, revenues and expenses that form the foundation for every transaction a business will make during its existence. It is the framework for all the bookkeeping, accounting and tax reporting the company will be required to perform. Create a proper chart of accounts for your business before you transact any business, or you will regret that you didn’t.
The download comprises two Word documents. One chart is for a corporation, the other is for a sole proprietorship.
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TIME SAVED: It took six hours of writing, editing and research to create this content.