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Posted by ~^ beancounter ~^ on April 17, 2008, 6:26 pm
Please log in for more thread options don't use numbers, just names...it is easier and eliminates
one more thing to keep track of...
On Apr 17, 12:28=A0pm, "Paul Thomas, CPA"
>
>
>
>
>
> > Are the label Numbers for each account arbitrary in the Chart of Account=
s?
> > For example, QB provides these by default...
>
> > 15000 - Furniture and Equipment
> > 17000 - Accumulated Depreciation
> > 24000 - Payroll Liabilities
> > 25500 - Sales Tax Payable
> > 30000 - Opening Balance Equity
> > ...
> > 47900 - Sales
> > ...
> > 51100 - Freight and Shipping Costs
> > ...
> > 66000 - Payroll Expenses
> > ...
> > 68100 - Telephone Expenses
> > 68400 - Travel Expenses
> > 68600 - Utilities
> > 80000 - Ask My Accountant
> > 90000 - Estimates
>
> > Is this a known CPA labeling/numbering convention? Or are these numbers
> > completely arbitrary?
>
> They're not completely arbitrary, but there isn't anything that requires
> them to be used.
>
> Older software required them to assign accounts to the report writer
> software. =A0Quickbooks doesn't need account numbers, but then would sort
> accounts by type and then by alpha. =A0So if you wanted to sort your liqui=
d
> assets by what is most liquid, in an account number system account 100 wou=
ld
> be Cash on Hand, 110 would be Bank of America......
>
> Under the Alpha sort, Bank of America would be listed first, followed by
> Cash on Hand.
>
> In a numeric account system, accounts are generally sorted as follows:
>
> 100 =3D Cash and other liquid assets, accounts receivable, fixed assets, l=
ong
> term assets, etc.
> 200 =3D accounts payable, current notes and loans payable, long term notes=
and
> loans payable, etc
> 300 =3D equity type accounts, stock, retained earnings, etc.
> 400 =3D sales and operating revenues, etc
> 500 =3D cost of goods.
> 600, 700, 800 =3D operating costs.
> 900 =3D other revenues and expenses
>
> Most decent chart of accounts can be held together by as little as three
> numbers, you might want four or more if you want more detail:
>
> 710 =3D Telephone
> 711 =3D Local Service
> 712 =3D Long Distance
> 713 =3D 800 Service
> 714 =3D Cell phones
> 715 =3D ..............
>
> And you can see how messy it can get if you want to, or need to, get too
> detailed.
>
> Some accounting systems also allow for sub-numbers for projects, cost
> centers, jobs, locations, departments, etc.
>
> 710.1 is the main office
> 710.3 is the lake office
> 710.5 is the mountain job
> 710.7 is the shipping department.
>
> What ever you decide to use, be sure you plan in advance how far you will
> need to carry out the numbers, if you'll be adding accounts in the future,=
> etc.
>
> --
> Paul A. Thomas, CPA
> Athens, Georgia- Hide quoted text -
>
> - Show quoted text -
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