well-designed chart of accounts for the business services limited liability company, or LLC, allowing for easy reporting and income tax preparation. The chart of accounts is a list of all accounts to be used for the company during the year. It is planned to provide a central place to collect financial information. Invoices are usually identified by a number and a short description, such as the 1010 Cash – .. Bank of America 2010 Accounts and 5020 Insurance costs

Verify that the reports you need

A proper chart of accounts for the business service LLC should provide information to report internally and with external parties. You know first what you need to tax and then set up a chart of accounts for this need. Then check out other government reports, such as sales tax or equipment reports and be sure that the chart of accounts can help you in this process. If management or investors need special financial report, be sure that the accounts of the organization in the table can be compiled to create the report. You may need to separate sales by type or to provide detailed information, such as the sale of parts, or selling on the type you have to create separate accounts to accumulate data in this fashion.

assets, liabilities and equity accounts

Setting up the balance sheet accounts in table accounts, such as assets, liabilities and retained earnings. Identify areas for assets, such as from 1000 to 1999. Liabilities could run from 2000 to 2999 and retained earnings would run in the 3000 to 3999 range. As you create accounts, use these goals to keep accounts directly. Within the property, you should have at least one cash account, which could be 1001 Cash – Bank Alliance. Do not set up a liability account with a stage for the assets, or you will end up with a mess. If you are not sure what accounts to create, looking for a balance sheet template online to get ideas.You can also review your tax return for accounts balance.

Revenue and expense accounts

Create income statement accounts in the table accounts. These are revenues and expenses related to the service business. You decide on the account range for your income, such as 4000 to 4999 and set up these accounts within this range. For example, a service revenue account would be 4001 Consulting revenue. Expenditure had a range of 5000 to 7999 and are created to track the cost basis. For example, if you pay for rent, office supplies and insurance, these transactions entered into three different accounts, such as the 5010 lease costs, office costs 5003 and 5010 Insurance costs. Do not use the same account for more than one account. If you want to know what accounts belong to the income statement, take a look at your own business tax return or the Internal Revenue Service Form C submitted by 1040.

Note that commas are not used by the account.

Creating a chart of accounts can be a challenge, but to do it in systematic way will help you get the results you need. You may try your figure accounts by running reports and making sure information is put in the right places. You may also be accounting professional photos of your accounts before you start using it.