COA Repair and Maintenance

Repair & Maintenance
Chart of Accounts
www.FastTracConsulting.com
Enhance the Accuracy of Your
Financial Reports
Gita Faust
Member of Intuit Trainer/Writer Network
Intuit Premier Reseller
Overview
The Chart of Accounts is the backbone of your business. It plays a role in every single
transaction you enter in your general ledger or QuickBooks. Even though setting up your
accounts can be a long and arduous process, it is important that you do it correctly as a
properly set up Chart of Accounts is integral to the organization of your financials.
That said, without a Advanced Certified QuickBooks ProAdvisor or an accountant, many of

my clients found it difficult to translate their businesses into accounting jargon to
specifically set up their Chart of Accounts. But that’s ok!
This guide will provide you with an introduction to the different components of the Chart
of Accounts to empower you with the basic knowledge to help you succeed in analyzing
your financial reports!
Understand Accounts
A chart of accounts is a list of the accounts that a company uses to record transactions in
its general ledger. Grab a piece of paper and write down all of the accounts you currently
use when recording your transactions.
For the most part, all of your accounts will be incorporated in one of the major categories
found in your financial statements. See if you can classify your accounts within one of
these categories:
Income Statement Accounts (Profit & Loss) Balance Sheet Accounts
• Income • Assets
• Expenses • Liabilities
• Cost of Goods Sold • Owner’s (Stockholders’) Equity
• Other Income
• Other Expenses
If you couldn’t classify some of the accounts, no problem! Keep your piece of paper with
you while read this guide. By the time you’re done you’ll not only be able to classify your
accounts, but you’ll also be surprised by the accounts you didn’t even think of!
Account Numbers
Account numbers are numbers that correspond with each account to help you recognize
the category of the account. Although the use of account numbers is unnecessary in
QuickBooks, it is still considered a good accounting practice.
The general rule of thumb is to assign the following numbers to account names within
these categories:
• 1000‐1999 Assets
• 2000‐2999 Liabilities
• 3000‐3999 Equity
• 4000‐4999 Income
• 5000‐5999 Cost of Goods Sold
• 6000‐6999 Expenses
• 7000‐7999 Other Income
• 8000‐8999 Other Expenses
When setting up your company file, add the account numbers given by your accountant.
Assets
Assets include everything that your business owns and increases the value of your
business.
Usually assets are categorized into two types: current and fixed. If an asset can be
liquidated in 12 months or less, it is a current asset.
These are a few commonly used asset accounts:
Current Assets Fixed Assets
• Cash • Land
• Petty Cash Fund • Buildings
• Accounts Receivable • Vehicles
• Allowance for Doubtful Accounts • Accumulated Depreciation‐ Buildings
• Inventory • Accumulated Depreciation‐ Equipment
• Prepaid Insurance • Accumulated Depreciation‐ Vehicles
Liabilities
Liabilities include money a company owes or any obligations it has to meet.
Just like assets, liabilities are also categorized as current and long‐term. If the company
has to pay back the money within the next 12 months, it is a current liability.
Here are a few frequently used liability accounts:
Current Liabilities Long‐term Liabilities
• Notes Payable • Mortgages

• Accounts Payable • Construction Loans
• Payroll Taxes
• Customer Deposits
Equity
Equity is essentially the book value of your company. If you subtract what you owe
(liabilities) from what you own (assets), the balance is the amount of equity.
Your company’s classification with the IRS (sole proprietorship, partnership, or
corporation) determines its equity accounts.
Here are the common equity accounts for the different types of companies
• Owner’s Capital
• Owner’s Draw
• Investments
• Distributions
• Additional Paid‐In Capital (for corporation only)
• Shareholder Draws (for corporation only)
For partnerships and corporations, make sure you keep separate accounts for each partner
or shareholder.
Income
Income accounts are used to record the amount of money that is brought to a company
through its regular business activities. The most common income accounts are named after
the service or product that the company provides and sells.
For example, if an accounting firm receives revenue from both tax preparation and from
bookkeeping, then two separate income accounts, such as “Tax Preparation” and
“Bookkeeping,” should be created.
If you need to be more specific with your revenue and track where your money is coming
from, use the items feature. Items provide behind the scenes details for easy revenue
tracking.
Do you have outstanding customer balances? Accept payments by credit card to increase
your cash flow.
Contact us to see if we can meet or beat your current rate, at 215‐579‐1465
• Intuit GoPayment ‐ Get paid anytime, anywhere!

• Merchant Service for Web Store
• Merchant Service for Terminals ‐ Online
• Point of Sale Merchant Service
• Merchant Service for QuickBooks
Income
When something breaks down around the home or office, there is nothing like a solid,
reliable repair company. If you are one of the great maintenance companies out there who
helps keep the world running smoothly, we salute you. We also offer you this advice for
setting up a chart of accounts in QuickBooks that will keep your books running as
smoothly as the machines you fix.
Repairs and maintenance companies should have two income accounts: one for services
income and another for parts and goods sold. If your company does not sell parts and
goods aside from those are used during repairs, then you do not need the parts and good
sold account. If you would like to track how much money you are earning from each job,
you can create a new item in QuickBooks for each job that you would like to track.
• Repairs
• Maintenance
• Appliance Repair
• Home Repair
• Foundation repair
• Electronic Repair
Cost of Goods Sold
Cost of Goods Sold accounts are used to track the direct costs of products manufactured or
sold. If your business primarily deals in services, then it is quite possible that you wouldn’t
have any Cost of Goods Sold accounts. There are several inventory tracking methods (such
as FIFO, LIFO, and average cost) you can use to determine the Cost of Goods Sold.
Cost of Goods Sold can usually be determined from these accounts:
• Labor
• Materials
• Subcontractor
• Mileage
• Credit Card Fees (optional)
• Employee Overheads (Allocation depends on your payroll service)
• Job Costing
Do you allocate direct and indirect costs for each job by employee and subcontractors?
Using time sheets and Intuit Payroll service makes it meaningful to view your cost and
profitability reports.
Don’t hesitate to give us a call at 215‐579‐1465.

Expenses…
Below are the most used expense accounts:
• Accounting • Credit and collection costs
• Advertising • Conferences
• Automobile and Truck Expenses • Depreciation
• Clean fuel vehicle • Dues and Subscriptions
• Fuel • Education and Training
• Repairs • Employees Benefit Program
• Maintenance • Equipment Rental/Lease
• Parking • Freight & Delivery
• Tolls • Gifts
• Bad Debts • Insurance
• Bank Charges • Building & Equipment
• Cleaning • Liability
• Computers • Health
• Contributions • Workers’ compensation
…Expenses
• Interest Expense • Software
• License and Permits • Taxes
• Professional Fees • Telephone
• Accounting • Cell phone
• Consulting • Land line
• Legal fees • Tools
• Payroll fees • Travel & Entertainment
• Meetings • Airfare
• Office Supplies • Meals
• Officers Compensation • Entertainment
• Payroll Expenses • Lodging
• Payroll Taxes
• Postage • Travel
• Printing • Uniform
• Rent • Utilities
• Repairs & Maintenance • Waste Removal
• Computer
• Office
• Equipment
Other Income/Expenses
Other Income refers to revenue generated from anything other than your company’s
ordinary operations.
Some examples of how you would acquire other income are:
• Bank interest
• Dividends
• Gain on foreign exchange
• Insurance claims
• Sale of an asset
Other expenses are simply expenses that your company does not normally pay.
Other expenses may include:
• Ask your accountant (for questions you may have)

• Damages
• Fraud charges
Associations
Here are a few associations for repair and maintenance industries:
• Association of Computer Repair Business Owners http://www.acrbo.com
• United Servicers Association http://www.unitedservicers.com
• Appliance Industry Association http://www.appliance.asn.au/
Jump Start Your QuickBooks
QuickBooks Accounting Services
End your frustrations! Our Intuit Certified team will help you automate your business
accounting practices using our praised procedures. Our services include bookkeeping;
payroll; merchant service; data file analysis; conversion & integration; QuickBooks setup,
consulting, and report customization.
Manage Properties with QuickBooks

Critically acclaimed author Gita Faust empowers real estate professionals with the
Manage Properties with QuickBooks book series to find financial balance and success.
These manuals give you step‐by‐step instructions on using QuickBooks for all of your real
estate and property management accounting needs!
Intuit QuickBooks Software

As Intuit Premier Resellers, we have the expertise in technology and solutions
integration for your small to mid‐size business. We are certified by Intuit to sell,
implement, and support QuickBooks Pro, Premier, Enterprise, and Point of Sale.
Including payroll and merchant service.
So Enjoy QuickBooks
By Entering Your Day‐to‐Day Transactions
Quickly in Your Books
Fast Trac Consulting will help you to set up your chart of accounts and more,
plus helps you find ways to save money, time and
run your business more efficiently.
Please feel free to contact us about any of our services or products.
215‐579‐1465
[email protected]
So, take these steps to financial freedom!

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Repair & Maintenance

That said, without a Advanced Certified QuickBooks ProAdvisor or an accountant, many of

Income Statement Accounts (Profit & Loss) Balance Sheet Accounts

These are a few commonly used asset accounts:

Current Assets Fixed Assets

Here are a few frequently used liability accounts:

Current Liabilities Long‐term Liabilities

• Notes Payable • Mortgages

Contact us to see if we can meet or beat your current rate, at 215‐579‐1465

• Intuit GoPayment ‐ Get paid anytime, anywhere!

Cost of Goods Sold can usually be determined from these accounts:

Don’t hesitate to give us a call at 215‐579‐1465.

Other expenses may include:

• Ask your accountant (for questions you may have)

• Association of Computer Repair Business Owners http://www.acrbo.com

QuickBooks Accounting Services

Manage Properties with QuickBooks

Intuit QuickBooks Software

Please feel free to contact us about any of our services or products.

So, take these steps to financial freedom!

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