3.1 Chart of Accounts in Contracting

EGIA

.loader-cover {display: none;}

Javascript is disabled. This will break some site features. To enable Javascript click here.

All

Videos

Documents

Templates

Articles

Trainers

What's new

You can also View by Categories

SAVE THIS PAGE

Chart of Accounts in Contracting

The chart of accounts defines the way the income statement and balance sheet are organized. It gives the structure, (a skeleton for the financial side of the business), so our accounting function has all the right buckets to put information into and make the income statement. The chart of accounts has a system based on what is known as the GAAP – the General Accepted Accounting Principles. The set of principles known as GAAP are based on consistency for accounting so we can compare our company to a known set of measurements, or key performance indicators.

Chart of Accounts for the Trades

Use this video to define your chart of accounts, and focus your accounting function on having the correct accounts in your financial statements. A properly formatted chart of accounts gives us the correct key measurements. Many income statements and balance sheets are poorly organized and formatted, and the accounts can be misplaced or simply disorganized, which will lead a company to have data that is misleading. Use the material here to be sure your statements are giving you the correct information, so you can make the most informed decisions.

Run Time: 37:07

Chart of Accounts Example

Here is a sample chart of accounts. A company can use this as a benchmark. The numbering system can be customized in Quickbooks (or any accounting software/module). Various departments that are not included here may be a part of a company. Follow the structural process of how the chart is accounts is organized.

Chart of Accounts - Where to Code Items

Where does the bookkeeping function code items, and into which accounts? This spreadsheet details the suggested areas to code debits and credits. These can and should be customized to your company by the bookkeeping function.