Do You Own a Cake Shop? Here's a Chart of Accounts to Help You Get Started
As a business owner, one of the hardest parts of running your business successfully is the accounting. While firms like Benchmark Ledger Solutions can help, in the beginning you might just want to do it yourself. In this article I'll talk a little bit about what a chart of accounts is, why it's important, and provide a free one you can utilize today.
What is a chart of accounts?
A chart of accounts is a document with all your company's assets, liabilities, equities, revenues, and expenses listed out to help with accurate accounting.
What's the purpose of a chart of accounts?
The purpose of a chart of accounts is to ensure your transactions are categorized accurately and consistently; it is also extremely useful when pulling reports, reviewing cash flow, assessing profitability, and calculating tax liabilities.
How does a chart of accounts relate to bookkeeping?
A chart of accounts is crucial to bookkeeping; it's how you're able to categorize transactions consistently and accurately across your general ledger. Without a chart of accounts, you might run into duplicate categories, unorganized books, and difficulties calculating income and self-employment tax, which could lead to IRS penalties.
Does a business need to hire an accountant or bookkeeper?
While your business might not need to hire a professional to do your record keeping, it is extremely important to ensure if you're doing it yourself that you're compliant, consistent, and organized. At Benchmark Ledger Solutions we offer tailored accounting packages for every stage of your company; this way your books will always be accurate and clean without hurting your bottom line.
Do you need a chart of accounts for your cake shop?
Here is the free chart of accounts you can use today: https://www.benchmarkledgersolutions.com/post/cake-shop-chart-of-accounts-free-sample-chart-of-accounts-for-a-cake-shop
The goal at Benchmark Ledger Solutions is always to help your company's profitability; that's why we provide free resources, just like this one. If you're interested in more accounting resources, or if you want us to create a chart of accounts for another industry, please let us know in the comments of this article! We're here to help, because we care about your profits, first. Always.
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