This item is a PDF file download.
You will find this helpful if:
- you are setting up your accounting system for the first time
- starting fresh in a new accounting program
- or needing to customize your existing accounting system
What You Get:
- The Chart of Accounts for Independent Jewelers - The Heart of Your System
- Detailed Item List for Independent Jewelers - Your Products & Services
- Sample Class Lists (9 different options)
- Sample Payment Method List
The Chart of Accounts
All accounting systems are based on one core chart of accounts. This chart houses all the different categories you report on your taxes, such as income, cost of goods sold and expenses. It also includes all of your Assets, like Inventory and other things you own, as well as Liabilities, which are the things you owe.
Usually, when you start a program, a default chart of accounts is configured for you. However, to customize it for your particular business, you have to pay your accountant to create one for you or customize it yourself if you know how it works. Rarely, does an accountant consider all of the important things we as jewelers want to track, and they will instead provide you with a general chart of accounts, which would work for any number of manufacturing businesses.
In order to have the best window into the profitability of your business, we hold certain things of higher importance. These are sample lists, and you can modify them by adding or deleting accounts that you need, but this is a more suitable jumping off point than a generic Chart of Accounts.
This is customized for an Independent Jeweler, who Manufactures Raw Materials into Finished Goods, as well as Outsources some Labor, CAD or Casting Jobs.
Under the Equity section of The Chart of Accounts it is noted which accounts you will use for specific Business Structures, such as Sole Proprietor vs S-Corp.
The Items List
The Items List is the home to all of your products and services that you buy and sell. Each item on this list is tied to two accounts: a Cost of Goods Sold account for the cost of the item and an Income Account for the retail amount. It is customized to the jewelry business of a small business owner, such as a jewelry designer or jewelry maker, but is flexible enough to grow with your business and can handle all the components of a large firm.
These are the item lines that relate to your Vendors, and what you but on your Bills and Checks, as well as to your Customers and what you put on your Invoices and Sales Receipts.
The Class Lists
Class Tracking is used to track the profitability of certain revenue streams. QuickBooks desktop includes this feature automatically, it just has to be turned on in the Preferences / Settings. This feature is only available in the Plus version of QuickBooks Online.
Provided in this download are 9 suggested revenue streams that would be of interest to a jeweler with sample classes for each one. You will pick one revenue stream and enter the sample classes in your Class List.
Payment Method List
As a bonus, also included in this download is a reference for different payment methods you should add to your list. You might be surprised.
WHY YOU CAN'T GO WITHOUT THIS DOWNLOAD:
Make you're life easier from the start and have all the categories correct. That way, your accountant will be happy, your fees will be less, and you will be able to look at reports and understand what they mean because they speak your language as well as an accountants.
Accounting = Organization. Use these lists to organize your records the right way.