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BadIdeaFactory / corporate

The corporate repository where we discuss our serious business
http://biffud.com/
MIT License
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Set up Quickbooks Chart of Accounts #81

Closed slifty closed 5 years ago

slifty commented 5 years ago

We need to set up Quickbooks. This has been an ongoing effort, and the iteration so far has not been captured here unfortunately. This changes now.

You know, for the next time we need to set up Quickbooks.

slifty commented 5 years ago

Step 1 in this process was to learn about accounting.

I think I am now 30% of the way to being a certified accountant. I know so much about accrual accounting now. Here are some accounting terms, just to impress you:

Asset, liability, credit, debit, equity, chart of accounts, journal entries, coding, dual entry bookkeeping, balance, principle of least accounting, law of big numbers, jamboree effect, perpetual reconciliation, king's ransom, leverage, the flour condition, secret diary, rule of inefficiency, and ampersand fudging.

I used these tutorials / online classes to develop this mastery, in case you want it too:

Never again.

Just kidding it will be like one day until I need to do it all again.

slifty commented 5 years ago

For our chart of accounts we're going to use the following code rules.

The first digit of an account indicates the broad account type:

1xxxxxx :: Asset 2xxxxxx :: Liability 3xxxxxx :: Equity 4xxxxxx :: Revenues 5xxxxxx :: Expenses

Each broad type of account starts to break down into a slightly different format.

Assets (1xxxxxx)

image

Some of these letters are re-used across the organization in the context of projects. A is general operating, B is BIFFUD projects, C is Consulting, G is Grants.

Equity (3xxxxxxxx)

image

Each partner has three equity subaccounts as shown in this example, which are totaled to form their personal equity account. They have a contribution (C), a distribution (D), and a base equity (E) account. Money they take in or get paid will be in the first two, whereas money that they are entitled to will be in the third. Not gonna lie not really sure what the point of the third one is, but I'm sure it will be clear some day. Or not! In which case we can just delete it.

slifty commented 5 years ago

IT IS DONE AND IT IS GLORIOUS.

I'm not going to number the expense / income accounts for now since it feels too early to understand their shape. The 1,2,3x were the most important at the moment.