So, doesn anyone know accounting

Davros · Post by **Davros** » Mon Jun 15, 2009 8:23 am

Well, I'm trying to set up the ERP for the shop. Part of the process is setting up the accounting part of it. Problem is, I can't seem to get an answer from the accountant Gerry wants to use about how she wants to see the chart of accounts structured.( I don't think getting another accountant is an option for him).
So, my dear friends, I come once again looking for advice of setting up accounts to the shop. Here is what I think I need to account for.
Obviously retail,purchase,suppliers,service,bike sales, etc.

I have found this
http://www.netmba.com/accounting/fin/accounts/chart/

But I'll be honest, it's a bit over my head at the moment.
Help!?

rc26 · Post by **rc26** » Mon Jun 15, 2009 8:34 am

Debits on one side, credits on the other.

I can tell you a little about depreciation as well. Straight Line method...a little rusty on others.

Davros · Post by **Davros** » Mon Jun 15, 2009 9:10 am

RC26 wrote:Debits on one side, credits on the other.

I can tell you a little about depreciation as well. Straight Line method...a little rusty on others.

That much I grasp. I just wonder how things need to be set up.
Like do I have a debit account per supplier, and what accounts do I set up for the customers. I know that simply there need to be credit and debit accounts, and what basically amounts to sub-accounts under that umbrella

Pintgudge · Post by **Pintgudge** » Mon Jun 15, 2009 9:31 am

I think that you need to be able to get answers from your accountant.

I don't think you will be able to run your buisiness without being able to have clear and prompt communication with the accountant.

You should all three work out this problem before you go any farther.

My $0.02

Davros · Post by **Davros** » Mon Jun 15, 2009 9:36 am

Pintgudge wrote:I think that you need to be able to get answers from your accountant.

I don't think you will be able to run your buisiness without being able to have clear and prompt communication with the accountant.

You should all three work out this problem before you go any farther.

My $0.02

OH, I agree wholeheartedly.

Rabbit_Fighter · Post by **Rabbit_Fighter** » Mon Jun 15, 2009 9:39 am

TV200 wrote:
Pintgudge wrote:I think that you need to be able to get answers from your accountant.

I don't think you will be able to run your buisiness without being able to have clear and prompt communication with the accountant.

You should all three work out this problem before you go any farther.

My $0.02
OH, I agree wholeheartedly.

+1 on that.

In the meantime, if you have to get some stuff setup before you hear back from your accountant, error on the side of too many accounts. It is a lot easier to consolidate than split them out later.

Sisyphus · Post by **Sisyphus** » Mon Jun 15, 2009 6:10 pm

You need to itemize all different expenses; these include rent/mortgage, insurance, consumables, gas for company vehicles, insurance for same... There's like a hundred or so. Anything you need to spend money on to run a business is deductable, and therefore needs to be accounted for. Employee wages, taxes...
Then there's "cost of goods sold," fixed assets, equity, and a whole whack of stuff.
Seriously, spend the three hundred bucks (deductable) on Quickbooks and learn how to use it. Even better, find an accountant that uses it, is proficient at it, and have him/her set it up for you and show you how to get started on it. You'll thank yourself for it later, believe me.

Moto_Myotis · Post by **Moto_Myotis** » Mon Jun 15, 2009 6:36 pm

I say make sure you have an accountant who will communicate openly and regularly with you. If you feel like you have to seek accounting advice from a bunch of random assholes (myself included) you met on the Internet, then maybe that's a sign you need a better accountant.

GOSTAZ · Post by **GOSTAZ** » Tue Jun 16, 2009 4:51 am

I have some experience with this. And yes, dude, you need someone who will talk to you, ALOT, when you first start out.

You need accounting for the following activities:
Retail
Repair
Inventory
If you have any other distant dreams of activities at Modern Classics, note them now, easier to work them into the skeleton chart of accounts NOW as opposed to later... Copyrights on artwork, shit like that.

You got anything to run this package on? Network of any type? Have you picked a software, or have one that you have used in the past?

I cannot solve all these problems for you, but I might be able to plug you into some folks that can.

Repeat after me. MY ACCOUNTANT WILL WORK FOR ME. HE WILL ALWAYS TAKE MY CALLS. Douchebag accountant will fuck you quicker and drier than dead sales months.

Moto_Myotis · Post by **Moto_Myotis** » Tue Jun 16, 2009 6:13 am

GOSTAZ wrote: You need accounting for the following activities:
Retail
Repair
Inventory

Plus payroll and depreciation. At UCB (and I understand that academic accounting is different) we also tracked benefits and vacation/sick leave, since those are also liabilities. There are also usually different categories for different types of things you buy (office supplies vs. supplies needed for repairs), and you'll probably definitely want to separate your main departments (service, retail, office, etc).

GOSTAZ wrote: Repeat after me. MY ACCOUNTANT WILL WORK FOR ME. HE WILL ALWAYS TAKE MY CALLS. Douchebag accountant will fuck you quicker and drier than dead sales months.

Yes, yes, yes. If you fail an audit, your ass--not to mention the business you've given your blood and soul to create--will be in deep doo doo. There is no way to trust an accountant who will not communicate with you clearly and with frequency about your finances. I'd hate to see you run into trouble down the line because your accountant wasn't clear about the financials with you.

Davros · Post by **Davros** » Tue Jun 16, 2009 8:39 am

Moto_Myotis wrote:
GOSTAZ wrote: You need accounting for the following activities:
Retail
Repair
Inventory
Plus payroll and depreciation. At UCB (and I understand that academic accounting is different) we also tracked benefits and vacation/sick leave, since those are also liabilities. There are also usually different categories for different types of things you buy (office supplies vs. supplies needed for repairs), and you'll probably definitely want to separate your main departments (service, retail, office, etc).

GOSTAZ wrote:

Repeat after me. MY ACCOUNTANT WILL WORK FOR ME. HE WILL ALWAYS TAKE MY CALLS. Douchebag accountant will fuck you quicker and drier than dead sales months.
Yes, yes, yes. If you fail an audit, your ass--not to mention the business you've given your blood and soul to create--will be in deep doo doo. There is no way to trust an accountant who will not communicate with you clearly and with frequency about your finances. I'd hate to see you run into trouble down the line because your accountant wasn't clear about the financials with you.

Yeah, I do understand that. I think Gerry has capitulated on finding a new accountant. That is more his expertise than mine. As far as the system goes, I have put a lot of time in customizing it for our needs, and it seems like it will work when I have real world data to populate it. The problem with quickbooks is that in order to have the versatility that I want, that package is $4200, with a $1200 POS front end. The one I am working with has cost me only time so far. Their motto is that setting it up will either cost you time or money. Before we got the building, I put a lot if time in, since I had nothing better to do with it. I am running everything on a Linux server, since I fucking hate windows( I don't and won't run it on a single computer I own) and their stupid server CAL's that cost a goddamn fortune.
Well anyway enough of that crap. At the end of the day I'm the guy who knows how things "work",and how to make them work if they don't. It doesn't matter if it's bikes or computers. It's the abstracts that confuse me. I know I came across as naive in the ways of accounting, and I certainly am. You people show sagacity in your advice on finding a new accountant, and I am in full agreement in that. Apart from the inconvenience of having someone who doesn't seem to be interested in communicating with us, I didn't even consider that it could be a road to disaster.

Off to raise some hell at the shop

GOSTAZ · Post by **GOSTAZ** » Tue Jun 16, 2009 11:03 am

You will find the right person, just look at it like this:

You want someone to treat you as a customer the way you treat your customers. Add to that they work for you. Doesn't sound like you have the right fit yet, but you can get there. If you need some help, let us know. Last question, Are you incorporated, or how are you structured as a business? The reason I ask is some folks specialize in LLP's, others in Sole Proprietorships, all kinds of different flaves.

Love the fact that you are rocking the Linux. Godspeed.

Davros · Post by **Davros** » Tue Jun 16, 2009 12:44 pm

GOSTAZ wrote:You will find the right person, just look at it like this:

You want someone to treat you as a customer the way you treat your customers. Add to that they work for you. Doesn't sound like you have the right fit yet, but you can get there. If you need some help, let us know. Last question, Are you incorporated, or how are you structured as a business? The reason I ask is some folks specialize in LLP's, others in Sole Proprietorships, all kinds of different flaves.

You speak with wisdom Alex. I think the hunt is on.

GOSTAZ wrote:
Love the fact that you are rocking the Linux. Godspeed.

Eh, I've come to realize that it's not for everyone, I've been playing with it off and on for about 9 years. So I was fairly comfortable with it when I made the full time switch a couple of years ago.
Now, trying to get others accustomed to it is difficult. It does take a bit of adjustment, and to a small degree, living without. Right now, the only linux machines in the shop are the server,(no gui

) , my laptop, and Trey's machine.

flounder · Post by **flounder** » Tue Jun 16, 2009 2:46 pm

I have a degree in accounting (not a cpa tho..) and have been messing with accounting systems for a while....(my current employer makes accounting software for architects, engineers and some fairly LARGE government contractors...)

All I can say is get with whomever is going to function as your accountant/cpa (you know, like argue with the IRS on your behalf should it be needed) and make sure you are all on the same page when you set your software up. It can be VERY expensive (both in cost and possible fines/penalties should they arrise) to change it after the fact. Not to mention things like that have the potential to get the IRS's attention (which is where those fines/penalty things start to add up).

Spend some money up front and do it right and it will save many possible headaches and government sponsored enemas in the future........

As always, this is just my .02 cents and ymmv!!!!!

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So, doesn anyone know accounting

So, doesn anyone know accounting