A clear and organized chart of accounts will make your accountant very happy during the tax season.
While there is not a one size fits all template for chart of accounts, many categories are standard. Remember, when setting up your chart of accounts in QBO, you will be offered a generic list of categories that you can use as a guideline. You will also want to create subcategories for these expenses.
It is important to record specific accountant details when setting up your chart of accounts, so your accountant can make sure they are filing your taxes accurately. For example, Automotive is a broad category that can relate to many different expenses: Gas, insurance, repairs & maintenance, registration and so on. By creating subcategories, you will be able to hand over your books at the end of the year with a very clear picture of where the money was spent.
More details equal fewer questions from your accountant. And, who doesn’t want that?
ZümiFi – working with your team to ensure you are covered and compliant!