Sole Proprietorship Accounting Made Easy

Conroe, Texas

JULIE GILMER, CPA

Introduction• Education- MBA- CPA

• Experience- 12 years Owner CPA Firm- Own 2 manufacturing businesses with International sales- Teaching QuickBooks 17+ years

• Affiliations- Intuit Trainers and Writers Network- Texas Society of CPA’s- Small Business Development Centers

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Chart Of Accounts

• ASSETS – things you own ( Accounts Receivables, Inventory, Equipment, etc)

– Current Assets – Items that will be used up within 1 year• Prepaid Insurance• Inventory

FIXED ASSETS – Property that will last more than 1 year and is above a nominal cost.

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Chart Of Accounts

• LIABILITIES – things you owe ( Accounts Payable, Payroll Taxes, Sales Tax, Notes, etc)

– Current Liabilities – due within the next 12 months• Payroll Taxes• Sales Taxes• Accounts Payable• Current portion of Long-term Debt

Long-term Liabilities – Due more than 12 months from now• Notes Payable

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Chart Of Accounts

• EQUITY – your ownership interest value

–Owner’s Draw – Money used for personal purposes

Retained Earnings – Accumulation of Profits and Losses from inception of business.

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CLASSES

• Keep track of Income and Expenses by location, department, partner, etc.

• Less complicated Chart of Accounts.

CLASSES

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REPORTS

• Balance Sheet consists of Asset, Liabilities and Equity

• Profit & Loss consists of Income and Expense

FINANCIAL STATEMENTS

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Julie’s Top 5 Tips

5. No need to start a new file every year.

4. Set up Chart of Accounts similar to Schedule C or E and build upon that.

3. Learn which Accounts are the foundation for Reports1. Income and Expenses = Profit & Loss2. Assets, Liabilities and Equity = Balance Sheet

Top 5 Tips

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Julie’s Top 5 Tips

2. Try “Classes” instead of Accounts

1. Have Fun – Don’t look at it as something you have to do, but rather something you want to do to fully understand your business.

Top 5 Tips