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Seth and Josh ask CHAT GPT to Generate Chart of Accounts by Industry

Equity 3000 Common Stock 3100 Retained Earnings 3200 Other Equity

Expenses 6000 Salaries and Wages 6100 Rent Expense 6200 Depreciation Expense 6300 Advertising Expense 6400 Insurance Expense 6500 Interest Expense 6600 Taxes and Licenses 6700 Office Supplies 6800 Utilities Expense 6900 Other Expenses

Revenue 4000 Sales Revenue 4100 Service Revenue 4200 Interest Revenue 4300 Other Revenue Cost of Goods Sold 5000 Cost of Goods Sold

***Note that this chart of accounts is a general guideline and can be customized to meet the specific needs of an organization.

Sure, here's a sample chart of accounts for a construction industry business using QuickBooks Online:

Assets 1010 Cash in Checking 1020 Cash in Savings 1030 Accounts Receivable 1040 Retainage Receivable 1050 Prepaid Expenses 1060 Other Current Assets 1070 Construction in Progress 1080 Equipment and Vehicles 1090 Accumulated Depreciation - Equipment and Vehicles 1100 Other Fixed Assets 1110 Accumulated Depreciation - Other Fixed Assets

Income 4010 Contract Revenue 4020 Change Orders 4030 Time and Material Revenue 4040 Other Construction Revenue 4050 Gain/Loss on Sale of Assets

Liabilities 2010 Accounts Payable 2020 Accrued Expenses 2030 Sales Tax Payable 2040 Retainage Payable 2050 Customer Deposits 2060 Notes Payable - Short-term 2070 Notes Payable - Long-term 2080 Other Current Liabilities

Cost of Goods Sold 5010 Direct Labor 5020 Direct Materials 5030 Subcontractor Costs 5040 Equipment Costs 5050 Other Direct Costs

Equity 3010 Owner's Equity 3020 Retained Earnings

Expenses 6010 Advertising and Promotion 6020 Amortization 6030 Auto and Truck Expense 6040 Bad Debt Expense 6050 Bank Charges 6060 Contracted Services 6070 Depreciation Expense 6080 Dues and Subscriptions 6090 Insurance Expense 6100 Interest Expense 6110 Licenses and Permits 6120 Office Expenses 6130 Payroll Taxes and Employee Benefits 6140 Rent Expense 6150 Repairs and Maintenance 6160 Supplies 6170 Taxes - Property 6180 Telephone and Internet 6190 Travel and Entertainment 6200 Utilities 6210 Other General and Administrative Expenses

Note that the account numbers and names are just a suggestion, and they can be customized to suit the specific needs of your business. Additionally, the accounts in this chart of accounts have been grouped according to their detail account type in QuickBooks Online, such as asset, liability, equity, income, cost of goods sold, and expenses.

Josh Standley’s Tax Year

• Sent out a letter due to inflation about raising our prices, stating “let us know if you want to stay by a certain date”
• Misinterpretation with the clients from the letter
• Josh’s business wants to concentrate on small businesses, meaning not having the focus on individual taxes
• When starting with a new client, Josh automatically creates new sets of books, but what happens if they say no I don’t want new sets of books? Is it a deal breaker? (No)
• Elaborate to the client why it’s important to start clean

Setting Up Chart of Accounts for New Clients

• Subject of the topic today: When setting up a new company, Seth’s take start a new company with the bare minimum, just the system required accounts, and build as you need them.