As discussed in a previous blog entry, I really do have a completely insane and overly organized chart of accounts for myself and my wife. I keep track of everything. I obtain receipts for everything. It is a hellish nightmare getting current and I usually file our income tax returns on the evening that they are due! Every year I make it a point to include everything, and once I have everything documented .. I have a complete set of financial statements. These statements include:
Of course, everything is on a calendar year basis, so my cut-off is at December 31. My financial statements have comparatives with the previous year, and these statements enable me to figure out how we did this year with our finances and overall “Net Worth”. It’s a lot of work, but I think it is worth it.
What does Net Worth mean? For the simple definition, it is the net difference between the value of your total assets over your total liabilities (= your Net Assets) at a specific point in time
NET WORTH is used more in conjunction with individual proprietorships and partnerships. RETAINED EARNINGS is the term used for corporations. The number, in accounting terms, should be in a CREDIT balance, which means you have EQUITY in your corporation, or in your Net Assets. If this figure is in a DEBIT balance, the term used for the incorporated businesses would be DEFICIT, and for unincorporated businesses probably CAPITAL DEFICIENCY. Just as an added comment, your Net Worth or Retained Earnings will always be your lifetime cumulative earnings.
Anyway, this entry is about HART’s Chart of Accounts. Before I list all of my general ledger (G/L) accounts and account numbers, you have to know the general groupings and range of the accounts, so if you choose to implement some sort of chart of accounts based on my chart of accounts, you can format your financial statement format design to either work with this design, or modify the actual numbers to fit into your exiting financial statement format design.
HART’s Chart of Accounts – The Design
numbers prior-0999 Not used
1000-1499 Current Assets
1500-1799 Capital Assets
1800-1899 Investments at Market Value
1900-1999 Other Long-Term Assets at Cost
2000-2499 Current Liabilities
2500-2999 Long-Term Liabilites, Loans, Mortgages
3000-3000 Capital, Beginning of Year
3001-3099 T4 Income and Non-Taxable Income
3100-3199 Increase / Decrease in Investments
3200-3499 Other Cash Contributions
3500-3999 Personal and non-taxable Expenditures
4000-4999 Business Income –
5000-5999 Cost of Sales included in Business Income
6000-7999 Business Expenses
8000-8499 Business Use of Residence
8500-8999 Business Use of Automobile
9000-and on .. Not used except:
9500-9500 Suspense
My General Ledger program makes use of: Account Numbers, Divisions, Sub-accounts and Branches. During the creation of new data files, I can specify any length number for each of these four units. For my own chart of accounts, I am using “4” digits for the Account Number, and “1” Digit for the Division. I am not using sub-accounts or branches. The reason I am using divisions, is that both my wife and myself have separate individual businesses to report on our personal tax returns, and the way my system works, it automatically consolidates everything in it’s path.
For example…. If I had these balances in my G/L….
4000-0 Consolidated Sales ($0.00)
4000-1 Sales – Division 1 ($1000.00)
4000-2 Sales – Division 2 ($1000.00)
4100-0 Consolidated Consulting ($0.00)
4100-1 Consulting – Division 1 ($1000.00)
On the consolidated report, account 4000 would show $2,000 and 4100 would show $1,000. It lets me keep the details, but get an overall picture of what’s really going on. For the record, All “Balance Sheet” and “Capital Statement” accounts have no divisions, just “0”, and only with the “Income Statement” are divisions used.
Okay! Here is HART’s – Chart of Accounts
** For obvious and personal reasons, some accounts have been renamed and others omitted
1000-0 Bank-1
1001-0 Bank-2
1002-0 Bank-3
1003-0 Transfers Banks 1-2-3
1010-0 Bank-4
1011-0 Bank-5
1012-0 Transfers Banks 4-5
1015-0 Bank-6
1016-0 Bank-7
1200-0 Accounts Receivable (Billings)
1201-0 Payroll Clearing
1205-0 Accounts Receivable (Misc)
1400-0 Prepaid Vehicle Lease Payment
1425-0 Prepaid Deposits – Other
1450-0 Prepaid Property Taxes
1500-0 Condo Property
1550-0 Automobile #1
1555-0 Automobile #2
1600-0 Furniture, Fixtures and Equipment
1700-0 Business #1 – Class 08 Equipment
1705-0 Business #1 – Class 10 Equipment
1710-0 Business #1 – Class 45 Equipment
1750-0 Business #1 Equipment Capital Cost Allowance (CCA) claimed
1760-0 Business #1 Automobile Capital Cost Allowance (CCA) claimed
1770-0 Business #2 Automobile Capital Cost Allowance (CCA) claimed
1800-0 Mutual Funds – Registered, at MV
1801-0 Mutual Funds – Non-Registered, at MV
1805-0 Self-Directed RRSP Trading Account, at MV
1810-0 Non-Registered Trading Account, at MV
1815-0 Other Investments, at MV
1900-0 Lifetime Membership #____
1905-0 Equity in Gas Co-Op #1
1906-0 Equity in Gas Co-Op #2
2000-0 Accounts Payable – Trade
2001-0 Accounts Payable – Accrued
2005-0 Phone – Home
2006-0 Phone – Cell #1
2007-0 Phone – Cell #2
2008-0 Phone – DSL
2010-0 Utilities – Natural Gas
2011-0 Utilities – Electricity
2012-0 Utilities – Cable TV
2020-0 Credit Card – 1
2021-0 Credit Card – 2
2022-0 Credit Card -3
2023-0 Credit Card – 4
2024-0 Credit Card – 5
2030-0 Gas Card – 1
2031-0 Gas Card – 2
2040-0 Other Card – 1
2041-0 Other Card – 2
2042-0 Other Card – 3
2043-0 Other Card – 4
2044-0 Other Card – 5
2100-0 Provincial Sales Tax (PST) Payable
2200-0 Goods And Services Tax (GST) Return Filed
2201-0 Goods and Services Tax – Collections
2202-0 Goods and Services Tax – Input Tax Credits
2250-0 Other Loans payable
2300-0 Income Taxes Payable – 1
2301-0 Income Taxes Payable – 2
2400-0 Line of Credit
2500-0 Mortage Payable
2501-0 Home Equity Line of Credit
2505-0 Furnace (Natural Gas) Financed
3000-0 Capital, Beginning of Year
3100-0 Employment Income – T4
3102-0 GST Tax Credit (non-taxable)
3103-0 Co-Op Rebate
3105-0 Proceeds from Garage Sales
3106-0 Proceeds from other Personal Declutter
3108-0 Lottery Winnings (subscription)
3110-0 Registered Investments Cashed In
3150-0 Increase (Decrease) in Investment – Registered
3151-0 Increase (Decrease) in Investment – Non-Registered
3152-0 Increase (Decrease) in Mutual Funds – Registered
3153-0 Increase (Decrease) in Mutual Funds – Non-Registered
3500-0 Carrying Charges (T1) – 1
3500-0 Carrying Charges (T1) – 2
3550-0 Cash Drawings (Withdrawals) – 1
3551-0 Cash Drawings (Withdrawals ) – 2
3555-0 RRSP administration Fee (Non-deductible)
3560-0 RRSP Contributions in Year – 1
3561-0 RRSP Contributions in Year – 2
3562-0 Payroll – Group Plan deducted (deductible)
3563-0 Payroll – Canada Pension deducted
3564-0 Payroll – Employment Insurance deducted
3565-0 Payroll – Life Insurance and AD&D deducted (non-deductible)
3566-0 Payroll – Social Club and other deductions
3567-0 Payroll – Income Taxes deducted
3570-0 Canada Pension on Self Employment Earnings – 1 (T1)
3571-0 Canada Pension on Self Employment Earnings – 2 (T1)
3572-0 Income Taxes payable on T1
3580-0 Life Insurance (non-deductible)
3600-0 Cable T.V.
3602-0 Non-Deductible Bank Charges – 1
3602-0 Non-Deductible Bank Charges – 2
3610-0 Groceries and Pet Supplies
3615-0 Household Items
3616-0 Bedding, Sheets, Etc
3618-0 Books, Movies, Videos, CD’s, DVD’s
3619-0 Lottery Subscriptions
3620-0 Clothing – 1
3621-0 Clothing – 2
3625-0 Equipment Repairs and Rentals (Non-Deductible)
3630-0 Personal Gift Purchases
3635-0 Fitness and Health
3647-0 Pet (Zeus) Vet Bills
3648-0 Pet (Maxxie) Vet Bills
3649-0 Pet (Sophie) Vet Bills
3650-0 Pets – Extra Curricular And Agility
3651-0 Pets – Licenses
3655-0 Deductible Medical Expenses (official)
3656-0 Charitable Donations (official)
3657-0 Political Donations (official)
3670-0 Vacations and Holidays
3695-0 Personal use of Residence – 1
3696-0 Personal use of Automobile – 1
3697-0 Personal use of Automobile – 2
3698-0 Personal use of Meals – 1
3699-0 Personal use of Meals – 2
4000-0 Fee Income – 1
4010-0 Fee Income – 2
4011-0 Income Tax Preparation
4012-0 Cash Flow and Projections
4013-0 Notice to Reader
4014-0 Review Engagement
4015-0 Audit
4016-0 Monthly Accounting
4017-0 Disbursements Recovered
4018-0 Consulting and Training
4019-0 Design, Format, Set-up
4020-1 Sales – 1
4021-1 Sales – 2
4100-0 Ebay – Net
6000-0 Advertising – 1
6000-1 Advertising – 2
6010-1 Bad Debts – 1
6125-0 Business Opportunity
6050-0 Licenses, Memberships, Subscriptions
6075-0 Commissions, Referral Fees
6100-0 CCA – Per T1 – 1
6100-1 CCA – Per T1 – 2
6300-0 Interest – 1
6300-1 Interest – 2
6400-0 Computer Lease
6450-0 Meals and Entertainment – 1
6450-1 Meals and Entertainment – 2
6451-0 Less: 50% Addback M & E – 1
6451-1 Less: 50% Addback M & E – 2
6500-0 Office Supplies – 1
6500-1 Office Supplies – 2
6550-0 Parking
6600-0 Professional and Consulting Fees
6625-1 Purchases
6655-0 Sub-Contract Fees
6670-1 Supplies and Materials
6680-0 Taxi
6700-0 Telephone
6700-1 Telephone
6750-0 Training Materials
6770-0 Travel
6800-0 Wages – 1
6800-1 Wages – 2
6805-0 Wages – Employee benefits – 1
6805-1 Wages – Employee benefits – 2
8000-0 Heat
8010-0 Electricity
8020-0 Insurance
8030-0 Maintenance
8040-0 Mortgage Interest
8041-0 Interest – Furnace Loan
8045-0 Mortgage Insurance
8050-0 Property Taxes
8051-0 Property Taxes Adjustment (Rebates)
8060-0 Common Elements – Regular
8061-0 Common Elements – Special
8070-0 House Cleaning
8080-0 Security and Monitoring
8099-0 Less: Personal Use of Residence
8099-1 Business Use of Residence
8500-0 Fuel, Oil, Car Wash – 1
8500-1 Fuel, Oil, Car Wash – 2
8501-0 Fuel – 100% specific
8510-0 Maintenance and repairs – 1
8510-1 Maintenance and repairs – 2
8520-0 Insurance
8520-1 Insurance
8530-0 License
8530-1 License
8535-0 CCA – Vehicle 1
8535-1 CCA – Vehicle 2
8540-0 Leasing costs – Vehicle
8543-0 Bus Pass
8599-0 Less: Personal Use of Automobile 1
8599-1 Less: Personal Use of Automobile 2
9500-0 Suspense Account
THE END! A biddda biddda .. That’s All Folks!
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