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

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

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.

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.

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

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

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.

EQUITY – your ownership interest value

Owner’s Draw – Money used for personal purposes

Retained Earnings – Accumulation of Profits and Losses from inception of business.

CLASSES Keep track of Income and Expenses by location, department, partner, etc. Less complicated Chart of Accounts. CLASSES

Keep track of Income and Expenses by location, department, partner, etc.

Less complicated Chart of Accounts.

REPORTS Balance Sheet consists of Asset, Liabilities and Equity Profit & Loss consists of Income and Expense FINANCIAL STATEMENTS

Balance Sheet consists of Asset, Liabilities and Equity

Profit & Loss consists of Income and Expense

Julie’s Top 5 Tips No need to start a new file every year. Set up Chart of Accounts similar to Schedule C or E and build upon that. Learn which Accounts are the foundation for Reports Income and Expenses = Profit & Loss Assets, Liabilities and Equity = Balance Sheet Top 5 Tips

No need to start a new file every year.

Set up Chart of Accounts similar to Schedule C or E and build upon that.

Learn which Accounts are the foundation for Reports

Income and Expenses = Profit & Loss

Assets, Liabilities and Equity = Balance Sheet

Julie’s Top 5 Tips Try “Classes” instead of Accounts 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

Try “Classes” instead of Accounts

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.