CASE CHART OF ACCOUNTS Bank Accounts 1010 Cash, Checking - Demand deposits in bank for all regular trade receipts and disbursements. 1020 Cash, Savings - Deposits in savings and money market. accounts. 1030 Petty Cash --All of a company's petty cash accounts. Once this account is established there should not be any postings unless the total amount of the petty cash fund is increased or decreased. When petty cash is reimbursed, the check should be distributed to the applicable expense account ad it job related, the applicable item. 1040 Cash Payroll Demand deposits in bank for payroll disbursements only. For each pay period, check for the total amount of the payroll is written against the general account and deposited in the. payroll account. Accounts Receivable 1200 Accounts Receivable - Since tracking of accounts receivable is done within RedHouse, this account will only be used to track miscellaneous receivable transactions. Other Current Asset 1300 Costs in Excess of Billings-This account is used to record costs that exceed their estimated costs (sometimes referred to as under billing) based on the percentage of completion method. At the end of each month an entry is made to this account using numbers from the Open Jobs report. The entry is reversed the first day of the subsequent month. 1600 Prepaid Expenses--Unexpired portions of expenses applicable to future periods for items such as insurance, rent, interest, and taxes. Detailed accounts for prepayments may be provided by using sub- accounts to account 1600. 1630 Employee Loans and Advances --Debit for a salary advance and credit when advance is deducted from payroll or repaid by employee. 1690 Other Current Assets--Miscellaneous current assets not otherwise classified. Fixed Asset 1830 Office Furniture and Equipment--Cost of office furniture, fixtures, and small equipment used by administrative and office personnel. The cost of computer hardware and software can be included in this account or in a sub-account to 1830. 1840 Motor Vehicles--Cost of automobiles and trucks owned by the business. 1850 Construction Equipment--The cost of all construction equipment, excluding licensed motor vehicles. Charge or debit small tools of nominal value to account 7800 (Small Tools) 1900 Accumulated Depreciation--Accumulated depreciation on all fixed assets. Sub-accounts can be used to record accumulated depreciation for each fixed asset category. Other Asset 1950 Franchise Fee -Franchise fee paid to Case for the original purchase of your franchise. Do not include royalty payments in this category (include in account 5100). Amortization of these fees can be credited directly to this account or to a separate amortization account. Accounts Payable 2000 Accounts Payable, Trade--Amounts payable on open account to suppliers and subcontractors. Credit Card 2200 Credit Cards Payable - Amounts due on credit cards. Separate sub-accounts can be set up to track individual credit card balances. Other Current Liability 2300 Payroll Liabilities - A control account to accumulate the sum of all payroll liabilities. Liabilities to different taxing authorities are reported as sub-accounts to 2300. 2320 FIT/FICA Tax Withheld--Accumulated amounts of federal taxes withheld from employees' pay and owed to the federal government. All include amounts of social security (FICA) and Medicare taxes withheld from employees payroll. This account is also used to accrue the employer's portion of these taxes. 2330 SIT (State and Local Payroll Tax) Withheld--Accumulated amounts of state taxes withheld from employees' pay and owed to state government. Credit funds withheld from employees' pay, and debit payments to the state income tax division. Also include disability and other state withholding taxes. For multiple states, cities, or other local government withholdings, you may want to set up separate sub- accounts. 2340 Accrued FUTA Payable -Amounts accrued for federal unemployment tax liabilities. 2350 Accrued SUTA Payable - Amounts accrued for state unemployment tax liabilities. 2360 Misc. Payroll Withholdings--Other accumulated amounts withheld from employees' pay. Credit , funds withheld from employees' pay, and debit payments to the proper agencies. 2450 Other Accrued Expenses--The liability for expenses that have been incurred but the invoices have not been received or the expense has not been paid, such as professional fees, bonuses,commissions, and vacations. Detailed accounts for detail accounts for other accrued expenses may be provided by using an additional subledger or a two-digit subclass to the main account number. 2480 Billings in Excess of Costs--This account is used to record charges that exceed their estimated costs (sometimes referred to as overbilling) using the percentage of completion method of accounting. At the end of each month an entry is made to this account using numbers from the Open Jobs report. The entry is reversed the first day of the subsequent month. 2490 Current Portion of Long-Term Debt--Portion of principal payments included in account 2510 that are due on notes to be paid within one year. Lonq-Term Liabilities 2700 Long-Term Notes Payable-Control account for notes on vehicles, equipment and other assets used in operations. Include current portion in Account 2240 (Current portion of long-term debt). Detailed accounts for long-term payable liabilities may be provided by using sub-accounts. 2800 Due to Officers, Stockholders, Owners, and partners--Amounts due to company officers, stockholders, owners and partners. Equity 2900 Common Stock--Par value or stated value of stock outstanding. 2910 Additional Paid in Capital--Amounts received in excess of par or stated value of stock. 2920 Retained Earnings--Prior years' accumulation of profits. 2960 Stockholder Distributions, Dividends, and Draws--Accumulated owners' withdrawals for period. Maintain a separate account for each owner. At the end of the fiscal year, the account should be closed and amounts transferred and debited to Account 2920 (Retained earnings) Detailed accounts for Distributions, Dividends, and Draws may be provided by using sub-accounts. Income 3100 Income Received - This account is used to accumulate income received from jobs. All deposits of job income are made to this account. 3200 % of Completion Adjustment At the end of each month an entry is made to this account using numbers from the Open Jobs report. The entry is reversed the first day of the subsequent month. Cost of Goods Sold 4000 Direct Labor-Include the gross wages paid to home repair specialists that are charged to specific jobs. Non-job related labor should be posted to account 6035 -indirect HRS wages. 4010 Labor Burden-Payroll taxes and workers compensation insurance as well as other items such as health insurance, life and disability insurance that relate to gross wages. paid to the field crew. Also include vacation, holiday, sick and other pay days off for field crew. 4100 Material-Cost of Materials used on a remodeling project. Include all freight and taxes paid on the material in this account. 4200 Subcontractors-Cost of subcontractors used on a specific remodeling project. 4300 Other Direct Costs-Include costs of rental equipment, small tools consumed on a specific remodeling project, cost of permits and fees obtained for a particular project, and any other direct construction costs not otherwise classified. Expenses 5000-5990 Sales and Marketing Expenses This section of the operating expense chart of accounts is reserved for sales and marketing expenses. 5100 Royalty - Monthly royalty on sales paid to Case Handyman. 5150 Advertising--Classified and display advertising expenses as well as magazines, radio, television and other advertising. 5200 Job and Truck Signs--Photography, typography, printing, artwork, copy writing, materials, and supply expenses required to make signs for trucks and jobsite.. 5400 Marketing and Direct Mail - Production and mailing costs for direct mail programs, Fees paid to public relations firms for press releases and other publicity as well as any other marketing program. 5450 Uniforms - Purchased of shirts and jackets and rental of uniforms used by your field crew. 5500 Trade Shows - Booth rental and set-up costs for exhibiting in trade shows. Giveaway items, such as pens should be charged to account 5600 - promotional items. 5600 Promotional Items-Fees paid for special programs, i.e. pens, 5900 Meals and Entertainment - Meals and entertainment expenses incurred. These amounts are currently only 50% deductible for income tax purposes. 6000-6900 Salaries, Wages, and Benefits This section of the operating expense chart of accounts is reserved for salaries, wages and benefits of all employees whose time is not charged to jobs. 6010 Owners' Salaries- Total compensation paid to owners including salaries, and bonuses. 6020 Office Salaries and Wages -- Total compensation paid to accounting and clerical personnel including salaries, wages, and bonuses. 6032 Production Coordinator - Total compensation production coordinator (not allocated to specific jobs) including salaries, and bonuses. 6035 Indirect HRS Wages - Gross pay to home repair specialists that are not charged to a specific job. Included in this account is sick pay, vacation pay, holidays, meetings and other non job related wages. Wages for work on a job should be posted to account 4000 - direct labor. 6042 Sales Commissions --Commissions paid to employees. Draws against commissions should be posted to account 6045. 6045 Salaries, Sales Personnel--Salaries for non commission activities, excluding draws against present or future commissions. 6100 Payroll Taxes 6110 FICA Expense - Cost of the company's Social Security and Medicare taxes for all employees. If you are using QuickBooks to process your payroll a journal entry is necessary to transfer job related payroll taxes to account 4020 - Labor Burden. 6120 Federal Unemployment - Cost of the company's federal unemployment tax for all employees. If you are using QuickBooks to process your payroll a journal entry is necessary to transfer job related payroll taxes to account 4020 - Labor Burden. 6130 State Unemployment - Cost of the company's state unemployment tax for all employees. If you are using QuickBooks to process your payroll a journal entry is necessary to transfer job related payroll taxes to account 4020 - Labor Burden. 6200 Health Insurance--Health and accident insurance premiums paid by the employer for all personnel. Deductions for employees contribution towards health insurance should also be posted to this account. 6210 Life and Disability Insurance - Life and Disability insurance premiums paid by the employer for all personnel. Deductions for employees contribution towards life and disability insurance should also be posted to this account. 6220 Workers' Compensation Insurance--Insurance premiums for workers' compensation paid by the employer all personnel. 6230 General Liability Insurance - Portion of the company's package insurance which is based upon payroll. The property and casualty portion of the policy should be posted to account 8200 - General Insurance. 6250 Retirement, Pension, and Profit-Sharing Plans--Employee contributions to retirement, pension, and profit-sharing plans for all personnel. 6300 Recruiting and Hiring--Expenses associated with hiring personnel. Chart of Accounts 6900 Allocated Labor Burden - Contra account which allocates burden items to account 4010 - labor burden. If you are using QuickBooks to process your payroll, postings to this account can be set up automatically using a labor burden payroll item. 7000-7490 Office Expense This section of the operating expense chart of accounts is reserved for office related expenses. 7100 Rent--Rental payments for office and warehouse space. Also include rent paid for any outside storage facilities not charged to a specific job. Rental equipment for office equipment can be set up as a sub- account. 7200 Utilities --Cost of utilities (i.e. gas, electric, water & sewer) that serve the administrative offices. 7250 Repairs and Maintenance --Cost of all interior and exterior administrative office building repairs and maintenance, including interior remodeling not capitalized, janitorial service, landscaping, and window washing. Repairs and Maintenance for office equipment can be set up as a sub-account.-- All contracts and other charges for maintenance of office equipment. 7300 Office Supplies--Printing, stationery, and other office supplies. 7320 Postage and Deliveries--Stamps, express mail, couriers, FedEx, UPS, and other delivery services. 7410 Office Telephone and Fax - Standard monthly fees and long distance charges for office telephone. Cell phones, radios and pagers should be posted to account 7420. 7420 Cellular Phone and Pagers - Monthly fees and call charges for cellular, radio and paging for all personnel. 7430 Internet and Answering Service - Monthly fees for internet service. You can also include charges for use of answering service or establish a separate sub-account to 7400 - communications to track these charges. 7500-7990 Vehicle and Indirect Job Expenses This section of the operating expense chart of accounts is reserved for vehicles and job related expenses which are not charged to a specific job. 7610 Vehicle Lease --Payments on leased or rental vehicles. 7620 Vehicle Repairs and Maintenance --Repair and maintenance costs of vans, trucks and other vehicles, including minor repairs and major overhauls. 7630 Gas and Oil-Vehicle fuel, oil, and lubrication costs. 7640 Vehicle Taxes, Licenses, and Insurance --Taxes, licenses, fees, and property damage and liability insurance on company vehicles. 7650 Mileage Reimbursement - Reimbursement of employees for use of their personal vehicles. Chart of Accounts 7800 Small Tools - Small tools such as ladders, saw blades and miscellaneous materials not charged to a specific job. 8000 - 8990 Other Operating Expenses This section of the operating expense chart of accounts is reserved for all other operating expenses. 8100 Licenses and Fees - Contractors license, city business license, contractors bond, municipal fees, operating permits and any other licenses and fees not related to a specific job. 8120 Property and Franchise Taxes--Assessment of personal property owned by the company. Also include Taxes not otherwise classified, such as state tax on capitalization and franchise tax. 8200 Property Insurance - Costs of property insurance other than vehicles, including general and product liability insurance. Also include fire and extended coverage on buildings and contents as well as umbrella insurance coverage. Do not include employee related taxes such as workers compensation (6220), health insurance (6200), general liability (6230) and life and disability (6210). 8300 Accounting -Charges for assistance in the preparation of financial statements, tax advice, and other services rendered by an outside accounting firm. 8310 Legal Services--Charges submitted by legal counsel for services rendered. 8400 Dues and Subscriptions--Trade association dues and subscriptions for magazines, newspapers, trade journals, business publications, reports, and manuals. 8450 Training and Education Expenses--Cost of registration fees for seminars and conventions, in- house programs, literature, and materials. Also include expenses incurred in providing in-house meetings. 8500 Travel--Travel expenses including airfare, hotel and lodging expenses. Do not include charges for meals and entertainment (5900) since these items are currently only 50% deductible for tax purposes. 8600 Credit Card Processing Fees - Charges for processing of Visa, Master Card, American Express and other credit cards used by customers to pay for their jobs. 8700 Bank Charges--Bank fees for miscellaneous charges. Check printing should be charged to Account 8270, Office Supplies. 8710 Contributions--All charitable donations. 8800 Depreciation Expense --Depreciation on all company owned fixed assets. 8810 Amortization of Franchise Fee --Write-off of Case Handyman franchise fee. Other Income 9000 Interest Income-Interest earned from certificates of deposits, savings accounts, and other sources. 9010 Discounts Earned --Cash discounts earned from payment on account within the time established by the supplier or subcontractor. Other Expense 9100 Interest - Interest expense on all company notes payable, credit cards and credit lines. 9150 Other Expenses - Extraordinary expenses or expenses attributable to activities not relating to the main activity of the business.
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