sole proprietor and accounting
Post on 16-May-2015
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Sole Proprietorship Accounting Made Easy
Conroe, Texas
JULIE GILMER, CPA
Introduction• Education- MBA- CPA
• Experience- 12 years Owner CPA Firm- Own 2 manufacturing businesses with International sales- Teaching QuickBooks 17+ years
• Affiliations- Intuit Trainers and Writers Network- Texas Society of CPA’s- Small Business Development Centers
3 Intuit Proprietary & Confidential
Chart Of Accounts
• ASSETS – things you own ( Accounts Receivables, Inventory, Equipment, etc)
– Current Assets – Items that will be used up within 1 year• Prepaid Insurance• Inventory
FIXED ASSETS – Property that will last more than 1 year and is above a nominal cost.
4 Intuit Proprietary & Confidential
Chart Of Accounts
• LIABILITIES – things you owe ( Accounts Payable, Payroll Taxes, Sales Tax, Notes, etc)
– Current Liabilities – due within the next 12 months• Payroll Taxes• Sales Taxes• Accounts Payable• Current portion of Long-term Debt
Long-term Liabilities – Due more than 12 months from now• Notes Payable
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Chart Of Accounts
• EQUITY – your ownership interest value
–Owner’s Draw – Money used for personal purposes
Retained Earnings – Accumulation of Profits and Losses from inception of business.
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CLASSES
• Keep track of Income and Expenses by location, department, partner, etc.
• Less complicated Chart of Accounts.
CLASSES
8 Intuit Proprietary & Confidential
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REPORTS
• Balance Sheet consists of Asset, Liabilities and Equity
• Profit & Loss consists of Income and Expense
FINANCIAL STATEMENTS
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Julie’s Top 5 Tips
5. No need to start a new file every year.
4. Set up Chart of Accounts similar to Schedule C or E and build upon that.
3. Learn which Accounts are the foundation for Reports1. Income and Expenses = Profit & Loss2. Assets, Liabilities and Equity = Balance Sheet
Top 5 Tips
12 Intuit Proprietary & Confidential
Julie’s Top 5 Tips
2. Try “Classes” instead of Accounts
1. Have Fun – Don’t look at it as something you have to do, but rather something you want to do to fully understand your business.
Top 5 Tips
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