Expenses in Chart of Accounts

Problem

User is looking for Expense accounts, Revenue accounts, Accounts Payable or Accounts Receivable in Chart of Accounts, while working with Goldenseal accounting software. Can't find them!

Diagnosis

Instead of "classic" accounting accounts, Goldenseal uses Cost Categories and Category Systems to group and classify expenses and sources of revenue. There's no need to set up Expense or Revenue accounts in the Chart of Accounts, since Goldenseal has a different system to accomplish the same thing. It's designed specifically for job costing, and most people find it easier to use.

Goldenseal small business accounting software automatically tracks Accounts Payable, Accounts Receivable, Payroll, Taxes, and other "intangible" items. There is no need to set up accounts for those functions, either.

Solution

Goldenseal works best if you use the Chart of Accounts for what it's designed for!

• Use Job Accounts for customers, projects, and overhead expenses.
• Use Asset Accounts for bank accounts, equipment, real estate, and other tangible assets.
• Use Liability Accounts for loans and credit cards.
• Use Cost Accounts for equipment, employees, material suppliers and subcontractors.

Instead of Expense Accounts and Revenue Accounts, use Cost Categories to classify those items.

The Goldenseal accounting software automatically handle "intangible" accounting items. Use the Pay Bills command for payables, and the Billing commands for receivables. Use Deposit Funds to enter receivables as they are paid. Use the Write Payroll command to calculate payroll (then use Pay Bills for taxes that are due). Use the Reconcile command to balance checkbooks against the bank statement.

Comments

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Entered 9/10/2007 by Casey. Updated 10/23/2010.