QuickBooks Setup for Case Handyman by fzJbgL0

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									                                        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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