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When keeping a set of books and records this typical Chart of Accounts
may be used:
- Advertising Expense
-
Automobile Expense:
- Mileage method using
approximately 50˘ per business mile
- only allowable if chosen the
first year of business use for owned vehicle / first year of
use for a leased vehicle.
- Parking, Tolls, Loan
Interest and Property Taxes are in addition to the mileage
- Medical Transportation & Moving
Expense miles are approximately 16.5˘
- Charity Volunteer Work miles
are approximately 14˘
- Actual expense method:
gasoline, insurance, maintenance/repairs, etc.
- if switched to after using
the mileage method, then depreciation is limited to straight-line
and the remaining life needs to be estimated.
- Parking Fees & Tolls
- Bank Service Charges
- Books and Library
-
Charitable Donations
(limited deductibility)
- Cleaning & Maintenance
- Commissions Paid
- Consultants Paid
- Credit Cards (payments
received from your customers)
- Vendor service fees
(discount fees)
- Credit Cards (used to pay
for business expenses)
- Do not charge to "credit
card" Assign each item to another classification on this page
- Interest and finance fees
are assigned to Interest Expense
- Other service fees are
assigned to Bank Service Charges or Office Expense
- Dues & Subscriptions
- Education, appropriate and
helpful for current occupation
- Employee Costs:
- Salary & Wages
- Employee Benefits Programs
- Payroll Tax Expense
- Subcontracted Labor
- Fines and Penalties (these
are not tax deductible)
- Heat, Light & Power
(Utilities)
- Insurance:
- Business Liability
- Excess Liability Coverage
- Employee Health Plans
- Owner Health Plan
- Uninsured Medical Expenses
- Employee Disability
- Owner Disability
- Employee Life
- Owner and Key-Man Life
- Interest expense on funds
used for the business
- including amount paid for
credit card cash advances
used specifically and directly for the business
- Internet ISP fees and Cable
Access fees
- Legal & Accounting
(Professional Services)
- Licenses & Permits
- Maintenance & Repairs of
Equipment
-
Meals and Customer
Entertainment
- Merchandise bought for
resale
- Miscellaneous Expense (not
listed elsewhere and kept to a bare minimum)
- Office Supplies & Expense
- Charting & Quote data feeds
- Office in the Home:
- Mortgage Interest
- Real Estate Taxes
- Insurance
- Repairs
- Utilities
- Rent Paid
- Condominium Common Charges
- Outside Services /
Outside Help
- Pension and Retirement Plan
Contributions
- Pension and Retirement Plan
Administration Expenses
- Postage and Delivery Expense
- Rent:
- Repairs & Maintenance of
Equipment
- Sales & Promotional Expenses
- Software Costs
- Small Tools used in your
trade or business
- Supplies
- Telephone
- Cell Phone
- Taxes:
- Business Property Taxes
- Payroll Taxes
- Secretary of the State fees
and taxes
- State Income Taxes on
Business Income
- IRS Income Taxes on Business
Income
-
Travel Expense:
- Airfare
- Train / Limousine
- Taxi
- Hotel/Motel
- Temporary Living Quarters /
Apartment
- Meals while away over night
- Utilities
- Furniture
- Equipment:
- Computers
- Automobiles
- Passenger Vehicles weighing
over 6,000 pounds
- SUV's weighing
over 14,000 pounds or seating 9+ people
- Trucks
- Office Equipment
- Machinery
- Principal Payments on Bank
Loans
- Owner Loans
- Owner's IRS Taxes
- Owner's State Income Taxes
- Owner's Health Insurance
- Owner's other medical &
health related items
- Owner's retirement plan
contributions
- self-employed 401(k) /
Profit Sharing Plan (Roth or Traditional)
- SEP / SIMPLE Plan
- Keogh Plan
- IRA (Roth or Traditional)
- Defined Benefit Plan
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