Is There a Stock Chart of Accounts That I Can Use When I Set Up My Business?
Your chart of accounts (COA) is important groundwork for your business to organize your financial transactions. The specificity of your COA will determine how clearly you can view your financial statements. You want enough detail to delineate categories of cash inflow and outflow that are important to your business, but not so much detail that your financial statements are a jumbled mess of detail.
- Cost of goods sold
- What information do you want at your fingertips each month? What reports would provide that, and does your chart of accounts allow for those reports? Do you want to know what the income or expense portions of your orders are from freight? Do you want to track samples?
- How complex is your business? Do you have multiple sources of income that might require multiple income accounts or multiple cost of goods sold accounts?
- Do you have to report to owners, shareholders, banks, etc.? What information do you need for them?