Set Chart of Accounts
2-3 hoursCreate income, COGS, expense, and liability categories aligned to Schedule C or P&L.
Field context
This workflow is part of 6 niche fields
Free step-by-step bookkeeping for small business owners. Plan bookkeeping with calculators and checklists covering set chart of accounts, record transactions.
Create income, COGS, expense, and liability categories aligned to Schedule C or P&L.
Categorize bank and card feeds; attach receipts; reconcile weekly.
Reconcile all accounts, run P&L, compare to budget variance.
Summarize quarterly P&L, estimate taxes, organize docs for CPA.
Interactive 4-phase technical roadmap from prep measurements to final inspection.
Accurately gauge working surface dimensions, inspect sub-layer conditions, and establish reference benchmark baselines.
Adjust project scale to dynamically estimate required materials & budget for Bookkeeping Guide.
Covers 165 sq ft required materials.
Estimated essential tools & safety gear.
Baseline DIY execution cost estimate.
Generate monthly profit snapshot from categorized data.
Compare actual vs budget by category.
Estimate quarterly tax from YTD net profit.
Calculate SE tax on net self-employment income.
Match open invoices to AR balance.
Starter categories for service businesses.
| Account | Type | Examples |
|---|---|---|
| 4000 Sales | Income | Product, service |
| 5000 COGS | Expense | Materials, shipping |
| 6000 OpEx | Expense | Software, rent |
| 7000 Owner Draw | Equity | Transfers to personal |
Single card simplifies categorization and audit defense.
Personal expenses in business books invalidate clean audit trail.
Rules for rent, software, and payroll save hours monthly.
Crucial code requirements, material risk alerts, and prevention checklists for Bookkeeping Guide.
⚠️ Risk Warning: Purchasing net calculated material causes project delays when cuts or breakage occur.
💡 Prevention Action: Always add a 10%-15% buffer allowance to initial calculated quantities.
⚠️ Risk Warning: Applying finishes to dusty or uneven surfaces reduces adhesion by up to 60%.
💡 Prevention Action: Vacuum, prime, and check levelness (max 1/8" gap over 10 ft) before starting.